South Korea to Scrap One-Exchange–One-Bank Limit in Digital Asset Reform
Korean regulators launched a formal review of the one-exchange–one-bank policy, linking it to delayed 2026 reforms under the Digital Asset Basic Act.
Summary
On January 20, South Korea’s Financial Services Commission (FSC) and Fair Trade Commission (FTC) began evaluating whether to repeal the one-exchange–one-bank rule, which restricts cryptocurrency exchanges to a single banking partner. The review focuses on addressing market concentration and improving small exchanges’ access to banking services. This policy assessment is connected to the second phase of the Digital Asset Basic Act, which has now been postponed until 2026.
Terms & Concepts
- Digital Asset Basic Act: Proposed legislation in South Korea designed to regulate and structure the digital asset market.
- One-Exchange–One-Bank Policy: A regulation requiring cryptocurrency exchanges to partner with only one banking institution, aimed at meeting AML and due diligence standards.