Calls are resurfacing in South Korea to ease the ‘one exchange-one bank’ shadow regulation that governs real-name account partnerships between digital asset exchanges and banks, according to a report by Edaily. Industry sources indicate the renewed push comes ahead of the planned opening of the digital asset market to corporate participants in the second half of the year.
Banks Seek New Partnerships
Banks not currently partnered with won-denominated exchanges — including BNK Busan Bank, iM Bank, NH Nonghyup Bank, and Woori Bank — have reportedly been in contact with virtual asset exchange officials to explore potential tie-ups. Some industry participants are also raising the possibility of linking exchange accounts with securities firms, in addition to allowing multiple banking partners.
Background of the One Exchange-One Bank Rule
The ‘one exchange-one bank’ policy has been a de facto regulatory requirement in South Korea since 2018, when the government introduced stricter anti-money laundering measures for the cryptocurrency sector. Under this rule, each won-denominated exchange must partner with a single bank to issue real-name accounts for users. Critics argue the policy limits competition, restricts consumer choice, and creates barriers for smaller exchanges to operate.
Implications for the Corporate Market
The timing of this renewed push is significant. South Korea’s financial authorities have signaled plans to allow corporate participation in the digital asset market later this year. Currently, only individual investors can trade cryptocurrencies through won-denominated exchanges. Allowing corporations to enter the market would require more robust banking infrastructure, including multiple bank partnerships per exchange to handle larger transaction volumes and risk diversification.
If the regulation is eased, it could reshape the competitive landscape. Larger exchanges like Upbit and Bithumb, which already have established bank partnerships, may face new competition as smaller exchanges gain access to banking services. It could also pave the way for securities firms to offer crypto-related services, further blurring the lines between traditional finance and digital assets.
Conclusion
The renewed discussion around multiple bank partnerships per crypto exchange reflects a broader shift in South Korea’s approach to digital asset regulation. As the country prepares to open its market to corporate investors, regulatory flexibility will be critical. The outcome of these discussions could set a precedent for how other regulated markets manage the intersection of traditional banking and cryptocurrency.
FAQs
Q1: What is the ‘one exchange-one bank’ rule in South Korea?
The rule requires each won-denominated cryptocurrency exchange to partner with a single bank to issue real-name accounts for users, as part of anti-money laundering measures introduced in 2018.
Q2: Why are calls resurfacing to ease this regulation?
The push comes ahead of the planned opening of the digital asset market to corporate participants in the second half of the year, which would require more flexible banking infrastructure.
Q3: Which banks are reportedly interested in new partnerships?
Banks including BNK Busan Bank, iM Bank, NH Nonghyup Bank, and Woori Bank have been in contact with virtual asset exchange officials to explore potential tie-ups.
Frequently Asked Questions
What is the ‘one exchange-one bank’ rule in South Korea?
It is a de facto regulation since 2018 requiring each won-denominated crypto exchange to partner with only one bank to issue real-name accounts for users, aimed at strengthening anti-money laundering measures.
Why is South Korea pushing to allow multiple banks per crypto exchange now?
The renewed push comes ahead of plans to open the digital asset market to corporate investors later this year, which would require more robust banking infrastructure and risk diversification.
Which banks are reportedly seeking new partnerships with crypto exchanges?
Banks like BNK Busan Bank, iM Bank, NH Nonghyup Bank, and Woori Bank have been in contact with exchange officials to explore potential tie-ups.
How would easing the rule affect smaller crypto exchanges?
It could lower barriers for smaller exchanges that currently struggle to secure a single bank partnership, potentially increasing competition and consumer choice.
Could securities firms also partner with crypto exchanges under the proposed changes?
Yes, some industry participants are raising the possibility of linking exchange accounts with securities firms, in addition to allowing multiple banking partners.
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