Crypto Competition Debate Collides With Korea’s Next Crypto Law

[lingriiddd]

A government-commissioned study cited by Herald Economy found that the exchange-bank pairing model may reinforce market concentration by restricting banking access for smaller or newer exchanges. While designed to manage compliance risk, the research suggested that applying uniform standards to exchanges with vastly different risk profiles could disproportionately favor dominant players in an already concentrated won-based crypto market.

The timing is notable, as South Korea prepares the next phase of its crypto framework under the proposed Digital Asset Basic Act. Backed by President Lee Jae-myung, the bill would allow won-pegged stablecoins while imposing custodial requirements on reserves, though lawmakers delayed its submission to 2026 amid disagreements over oversight. Together, the banking review and the stalled legislation signal that South Korea’s approach to crypto regulation — especially who gets to participate — is still very much in flux.

[cryptobro]

rules meant for safety always end up helping the biggest players somehow