South Korea considers freeing cryptocurrency trading platforms from the "single bank account" requirement

According to the latest developments in the cryptocurrency trading sector, South Korean regulators have begun a comprehensive review of one of the most important operational restrictions that have governed this industry. The Financial Services Commission (FSC) and the Fair Trade Commission have launched an in-depth study to assess the possibility of removing the long-standing practice known as “one platform, one bank,” a rule that has limited cryptocurrency trading operations for many years.

Current Monitoring Mechanisms and Their Impact on Market Competition

The “one platform, one bank” rule was not originally codified in legislation but gradually emerged as a practical practice within anti-money laundering (AML) requirements and customer due diligence. Over time, this practice evolved into a strict standard governing cryptocurrency trading in the Korean market. Preliminary studies suggest that this model may directly contribute to market concentration by limiting emerging and mid-sized platforms from accessing necessary banking services.

Do Current Banking Restrictions Hinder the Growth of Small Trading Platforms?

Several analysts believe that the “one platform, one bank” system creates high barriers to entry, benefiting large platforms at the expense of smaller competitors. This focus on giant platforms could reduce options available to users and limit innovation in the cryptocurrency trading sector. The ongoing regulatory review aims to examine whether these restrictions conflict with principles of fair competition, a key question for the industry’s future in South Korea.

New Legislation for Digital Assets and Next Steps

This regulatory discussion is linked to South Korea’s progress in the second phase of the “Digital Asset Basic Act” project, a comprehensive legislative framework that will shape the future of the cryptocurrency trading and digital services industry. The project includes plans to license the issuance of stablecoins pegged to the Korean won, a move that could reshape the country’s digital financial landscape. However, there are potential disagreements over the details of the regulatory framework and approval mechanisms for these coins. The deadline for submitting the project has been extended to 2026, reflecting the complexity of the issue and the regulators’ need for more time to ensure a balanced approach that promotes innovation in trading while maintaining financial stability.