South Korea’s financial regulators are reviewing the long-standing practice that links each cryptocurrency exchange to a single banking partner, according to local media.
The review is reportedly being coordinated between the Financial Services Commission and the Fair Trade Commission to assess competition in the crypto market.
The one exchange–one bank model emerged from anti-money laundering and customer due diligence requirements rather than explicit legislation.
Under the current structure, exchanges rely on exclusive partnerships with domestic banks to provide fiat on- and off-ramps.
A government-commissioned competition study found the model may reinforce market concentration by limiting banking access for smaller or newer exchanges.
Researchers said applying uniform compliance standards across exchanges with different risk profiles may be disproportionate.
The study highlighted that the won-based crypto market remains heavily concentrated among a small number of dominant platforms.
Regulators are reviewing the issue as part of preparations for the Digital Asset Basic Act, the next phase of South Korea’s crypto legislation.
Lawmakers delayed submitting the bill until 2026 due to unresolved disagreements over the supervision of domestic stablecoin issuers.
The proposed law would allow won-pegged stablecoins while requiring reserve assets to be held by authorised custodians such as banks.