Korea Considers Multiple Bank Partnerships for Virtual Asset Exchanges

The South Korean government is considering a bill that would allow virtual asset exchanges to partner with multiple banks, potentially ending an eight-year-old rule requiring each exchange to have a single bank partnership.

Currently, five major exchanges in the country are tied to individual banks: Upbit with K Bank, Bithumb with KB Kookmin Bank, Coinone with KakaoBank, Korbit with Shinhan Bank, and Streami (Gopax) with Jeonbuk Bank. The 'one exchange, one bank' rule has been criticized for creating difficulties for users trying to link their existing bank accounts to different exchanges.

The Financial Services Commission (FSC) maintains a cautious stance on the current framework, citing concerns over money laundering and market competition. However, lawmakers have argued that allowing multiple partnerships would increase competition among banks and reduce barriers for users switching between exchanges.