South Korea urged to phase in multi-bank crypto exchange model

South Korea may struggle to fully adopt a system that would let each crypto exchange work with multiple banks, even as the industry pushes for broader investor choice. The Seoul Shinmun reported that a Korea Institute of Finance review, prepared as part of second-stage virtual asset legislation and measures to strengthen anti-money laundering rules for stablecoins, warned that a blanket rollout should be approached carefully. The review for the Financial Services Commission (South Korea's top financial regulator) said wider bank tie-ups could make money-laundering monitoring harder and further entrench the position of major trading platforms. Instead, it proposed a phased framework under which exchanges could connect to several banks, while each user would still select only one bank for trading.

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