Korea Considers Allowing Multiple Bank Partnerships for Crypto Exchanges
The South Korean government is set to debate a bill that would relax regulations on cryptocurrency exchanges. The proposed amendment aims to eliminate the 'one exchange-one bank' rule, which requires each exchange to partner with only one bank for real-name account services.
The current system has been criticized for limiting the ability of exchanges to scale their 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.
The move comes as part of a broader regulatory push in South Korea to balance innovation with investor protection. The government has introduced stricter custody standards and insurance requirements in recent years, but this amendment signals a potential shift toward a more accommodating stance.