South Korea weighs ending one bank rule for crypto exchanges: Report

South Korea is reportedly reviewing exclusive bank partnerships for crypto exchanges as regulators assess competition and prepare the Digital Asset Basic Act.

South Korea’s financial regulators are reviewing a long-standing practice that effectively ties each cryptocurrency exchange to a single banking partner, as part of a broader examination of competition in the country’s crypto market, according to local media.

Business outlet, the Herald Economy, citing government officials familiar with inter-agency discussions, said a review effort is being coordinated between the Financial Services Commission (FSC) and the Fair Trade Commission as policymakers evaluate whether existing practices contribute to market concentration. 

Although the “one exchange–one bank” model is not explicitly codified in South Korean laws, it emerged in practice due to Anti-Money Laundering (AML) and customer due diligence requirements. 

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