South Korea to Debate Scrapping One Exchange-One Bank Rule for Crypto Firms

South Korea’s National Policy Committee is set to debate a bill today that would eliminate the so-called one exchange-one bank rule, a regulation requiring digital asset exchanges to partner with a single bank for real-name account services. The amendment, part of the Act on Reporting and Use of Certain Financial Transaction Information, is among 136 bills on the agenda for the full committee meeting at the National Assembly.

What the Amendment Proposes

The proposed change would allow virtual asset service providers (VASPs) to obtain real-name verified deposit and withdrawal accounts from one or more financial institutions. Currently, exchanges must maintain a single banking partnership, a rule introduced in 2018 to curb money laundering and enhance transparency in crypto trading. The amendment also stipulates that the standards, conditions, and procedures for opening such accounts would be set by presidential decree, granting the government flexibility to adjust requirements as the market evolves.

If passed, the change could significantly alter the operational landscape for crypto exchanges in South Korea. Exchanges have long complained that the one-bank rule limits their ability to scale services and negotiate favorable terms. By allowing multiple banking partners, the amendment could foster greater competition among banks and improve access to banking services for smaller exchanges, which have often struggled to secure partnerships due to risk-averse lenders.