{"id":5820,"date":"2026-01-20T13:28:49","date_gmt":"2026-01-20T13:28:49","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=5820"},"modified":"2026-01-20T13:28:49","modified_gmt":"2026-01-20T13:28:49","slug":"south-korea-may-target-fairer-crypto-market-with-banking-rule-changes-report","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=5820","title":{"rendered":"South Korea may target fairer crypto market with banking rule changes: report"},"content":{"rendered":"<p><\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4-smartcrop-363x181.png\" type=\"image\/jpeg\"\/><img decoding=\"async\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4.png\" alt=\"South Korea targets fairer crypto market with banking rule changes\" width=\"100%\" height=\"100%\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li data-start=\"212\" data-end=\"631\">The one-exchange-one-bank model is not a legal requirement but is widely followed.<\/li>\n<li data-start=\"212\" data-end=\"631\">A government study found the setup limits access for small crypto exchanges.<\/li>\n<li data-start=\"212\" data-end=\"631\">Large platforms dominate Korean won-based trading due to better liquidity.<\/li>\n<\/ul>\n<p data-start=\"212\" data-end=\"631\">South Korea\u2019s top regulators are reportedly reviewing how local cryptocurrency exchanges work with banks, aiming to create a more balanced playing field.<\/p>\n<p data-start=\"212\" data-end=\"631\">The current system often links each crypto exchange to just one bank, limiting choice and creating high entry barriers for smaller firms.<\/p>\n<p data-start=\"212\" data-end=\"631\">Though this setup isn\u2019t officially required by law, it has become widespread due to anti-money laundering and identity verification rules.<\/p>\n<p data-start=\"633\" data-end=\"849\">The Financial Services Commission and the Fair Trade Commission are now coordinating a review to see whether this long-standing practice is stifling competition and reinforcing the dominance of a few large exchanges.<\/p>\n<h2 data-start=\"851\" data-end=\"888\">Rules may favour bigger exchanges<\/h2>\n<p data-start=\"890\" data-end=\"1237\">Under the existing system, exchanges need to form exclusive partnerships with domestic banks to allow customers to deposit and withdraw Korean won.<\/p>\n<p data-start=\"890\" data-end=\"1237\">Without that link, they can\u2019t offer basic fiat services.<\/p>\n<p data-start=\"890\" data-end=\"1237\">The model emerged in response to growing demands for transparency and risk control, but may now be working against smaller market participants.<\/p>\n<p data-start=\"1239\" data-end=\"1545\">A recent study commissioned by the government explored how current crypto regulations impact competition.<\/p>\n<p data-start=\"1239\" data-end=\"1545\">According to findings reported by local outlet Herald Economy, researchers concluded that the one-to-one exchange-bank setup makes it harder for newer or smaller exchanges to access banking services.<\/p>\n<p data-start=\"1547\" data-end=\"1852\">Even though it helps manage financial risks, applying the same strict standards across the board may be excessive when firms vary in size, volume, and risk profile.<\/p>\n<p data-start=\"1547\" data-end=\"1852\">The study also noted that most Korean won-based crypto trading happens on just a few large platforms, making the market highly concentrated.<\/p>\n<h2 data-start=\"1854\" data-end=\"1897\">Liquidity gap highlights entry barriers<\/h2>\n<p data-start=\"1899\" data-end=\"2243\">The research pointed out that when a few platforms dominate trading volume, they benefit from deeper liquidity and faster transactions.<\/p>\n<p data-start=\"1899\" data-end=\"2243\">This creates a cycle where users are more likely to choose the bigger players, further limiting the reach of smaller exchanges.<\/p>\n<p data-start=\"1899\" data-end=\"2243\">As long as banking access remains difficult, that pattern is unlikely to change.<\/p>\n<p data-start=\"2245\" data-end=\"2488\">This concentration may make the market less dynamic, reduce innovation, and restrict consumer options.<\/p>\n<p data-start=\"2245\" data-end=\"2488\">As a result, the current setup could be reinforcing the position of already-powerful exchanges, rather than encouraging healthy competition.<\/p>\n<h2 data-start=\"2490\" data-end=\"2532\">Lawmakers delay key digital asset bill<\/h2>\n<p data-start=\"2534\" data-end=\"2836\">The review of crypto-banking links comes alongside delays in broader legislative changes.<\/p>\n<p data-start=\"2534\" data-end=\"2836\">The Digital Asset Basic Act, which is expected to reshape the country\u2019s crypto regulation, was initially scheduled for submission before the end of 2023.<\/p>\n<p data-start=\"2534\" data-end=\"2836\">However, on December 31, lawmakers pushed it back to 2026.<\/p>\n<p data-start=\"2838\" data-end=\"3150\">The bill proposes allowing the launch of stablecoins backed by the Korean won, as long as the issuing companies store their reserve assets with approved custodians such as banks.<\/p>\n<p data-start=\"2838\" data-end=\"3150\">The delay stems from disagreements over how to supervise stablecoin issuers and whether a new oversight body should pre-approve them.<\/p>\n<p data-start=\"3152\" data-end=\"3396\">The Financial Services Commission is also weighing how to allow both financial and non-financial firms to take part in this sector without compromising on safety.<\/p>\n<p data-start=\"3152\" data-end=\"3396\">The goal is to support innovation while maintaining strong regulatory safeguards.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p>Policy and Regulation,South Korea#South #Korea #target #fairer #crypto #market #banking #rule #report1768915729<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The one-exchange-one-bank model is not a legal requirement but is widely followed. A government study found the setup limits access for small crypto exchanges. Large platforms dominate Korean won-based trading due to better liquidity. South Korea\u2019s top regulators are reportedly reviewing how local cryptocurrency exchanges work with banks, aiming to create a more balanced playing<\/p>\n","protected":false},"author":1,"featured_media":5821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":{"0":"post-5820","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eurozone"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korea may target fairer crypto market with banking rule changes: report - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"South Korea is reviewing crypto exchange-bank ties as regulators push for fairer access and less dominance by major platforms.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=5820\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea may target fairer crypto market with banking rule changes: report\" \/>\n<meta property=\"og:description\" content=\"South Korea is reviewing crypto exchange-bank ties as regulators push for fairer access and less dominance by major platforms.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptonews.uk.com\/?p=5820\" \/>\n<meta property=\"og:site_name\" content=\"Crypto News: Latest Cryptocurrency News and Analysis\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-20T13:28:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4-1024x683.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"\u884c\u653f\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u884c\u653f\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=5820\",\"url\":\"https:\/\/cryptonews.uk.com\/?p=5820\",\"name\":\"South Korea may target fairer crypto market with banking rule changes: report - Crypto News: Latest Cryptocurrency News and Analysis\",\"isPartOf\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=5820#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=5820#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4.png\",\"datePublished\":\"2026-01-20T13:28:49+00:00\",\"author\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#\/schema\/person\/822778c5844e0d16d43dce6630f4f1bf\"},\"description\":\"South Korea is reviewing crypto exchange-bank ties as regulators push for fairer access and less dominance by major platforms.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=5820#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptonews.uk.com\/?p=5820\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=5820#primaryimage\",\"url\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4.png\",\"contentUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/01\/20260120_1814_Image-Generation_simple_compose_01kfdpy0kxfaqtb9eyvn6d2zk4.png\",\"width\":1536,\"height\":1024},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=5820#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptonews.uk.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"South Korea may target fairer crypto market with banking rule changes: report\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cryptonews.uk.com\/#website\",\"url\":\"https:\/\/cryptonews.uk.com\/\",\"name\":\"Crypto News: Latest Cryptocurrency News and Analysis\",\"description\":\"Latest Crypto &amp; 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