South Korea May End One-Bank Rule for Crypto Exchanges

Crypto News Regulation

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 20, 2026

Key Takeaways

South Korea’s regulators are reviewing the “one exchange–one bank” rule to see if it limits fair competition in the crypto industry;
The practice, driven by anti-money laundering rules, forces exchanges to rely on a single bank for Korean won transactions;
A government study found this setup favors big exchanges and creates barriers for smaller or new crypto platforms.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

South Korea May End One-Bank Rule for Crypto Exchanges

BITDEGREE IN YOUR SOCIAL FEED

South Korea’s financial authorities are reconsidering a rule that requires each cryptocurrency exchange to have a single banking partner.

The review aims to determine whether this setup limits competition in the country’s crypto market, according to a report from Hearld Economy.

The Financial Services Commission (FSC) and the Fair Trade Commission are reportedly working together on the issue. Their discussions follow a government study that examined how current rules shape competition among crypto exchanges.

How to Pick the Right NFTs? (Animated DOs & DON'Ts)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

The “one exchange–one bank” system is not written into law, but became common practice due to anti-money laundering and customer verification requirements.

Because of these standards, exchanges often form exclusive partnerships with one bank to handle deposits and withdrawals in Korean won.

The recent study, obtained by the Herald Economy, found that this arrangement might make it difficult for smaller or newer exchanges to enter the market.

Limited access to banking services means that only a few large exchanges handle most of the country’s crypto trading.

Researchers also said that applying the same compliance rules to all exchanges may be unfair. Smaller platforms with lower trading volumes face the same demands as major exchanges, even though their risks differ.

The FSC recently announced that listed firms and investment companies can invest up to 5% of their equity in the top 20 cryptocurrencies. What did the agency say? Read the full story.