Exclusive Bank Ties for Crypto Exchanges Face Scrutiny in South Korea

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South Korea is considering a major shift in crypto market rules by reviewing the requirement for exchanges to partner with only one bank. Financial regulators are examining if this de facto “one bank” model limits competition.

As reported by the Herald Economy, the Financial Services Commission and the Fair Trade Commission are jointly leading the policy evaluation.

The rule, enforced through AML compliance, forces each exchange to rely on a single bank for customer cash transactions.

The move comes after a state-commissioned study highlighted concerns about market concentration, signaling a potential end to the exclusive partnerships that have defined the industry’s banking access.