South Korea Reconsiders the “One Exchange–One Bank” Crypto Model

[lingriiddd]

South Korea’s financial regulators are reviewing a long-standing practice that effectively ties each crypto exchange to a single banking partner, amid concerns it may be distorting competition. According to reporting by Herald Economy, the review is being coordinated between the Financial Services Commission and the Fair Trade Commission as part of a broader examination of market concentration in the country’s crypto sector.

While the “one exchange–one bank” model is not explicitly written into law, it emerged in practice due to strict AML and customer due diligence requirements. As a result, exchanges have relied on exclusive partnerships with domestic banks to provide won-based deposits and withdrawals — a structure regulators are now questioning as they reassess its long-term impact on competition and innovation.

[cryptobro]

korea rethinking the one exchange one bank thing is long overdue tbh