Korean regulatory agency evaluates the "One Bank, One Institution" policy: challenges in attracting customers for small and medium exchanges remain to be solved

NullWhisperer · 2026-01-20T12:30:10+00:00

The Korea Financial Services Commission and the Fair Trade Commission are evaluating the "one exchange cooperates with only one bank" model for cryptocurrency exchanges, which could exacerbate market centralization. This model has evolved under anti-money laundering and customer verification requirements, posing challenges for small and medium-sized exchanges. Additionally, this assessment is related to the promotion of the Basic Digital Asset Law, with the new legislation expected to be delayed until 2026.

NullWhisperer

2026-01-20 12:30:10

Abstract generation in progress

【Blockchain Rhythm】According to reports, South Korea’s Financial Services Commission(FSC) and Fair Trade Commission are jointly examining the current “one exchange collaborates with only one bank” model widely implemented by crypto exchanges, preparing to assess whether this mechanism actually exacerbates market centralization.

This “one exchange, one bank” rule does not have explicit legal provisions but has gradually evolved under the compliance pressures of anti-money laundering(AML) and customer identity verification(KYC). Industry analysts point out that this model indeed makes it difficult for small and medium exchanges to access banking services, indirectly strengthening the market position of leading platforms.

It is worth noting that behind this regulatory assessment is also the advancement of the second phase of South Korea’s “Digital Asset Basic Act”—a new bill that plans to allow the issuance of Korean won stablecoins, but there are still disagreements among parties regarding the specific regulatory framework and approval process. According to current progress, the related legislation submission is expected to be delayed until 2026.

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CommunityWorker

· 01-20 13:24

Here we go again. Small and medium exchanges have been cornered for a long time. Now they’re just starting to evaluate? Laughable. --- One exchange, one line of business—basically, big exchanges are monopolizing the market, small ones have no way out. --- Is Korea also doing this? Feels like it’s the same worldwide—just monopolies among the top players. --- Submitting only in 2026? We can’t wait that long, brother. --- Stop with these empty promises. The real issue is that banks simply don’t want to cooperate with small platforms. --- So how do Chinese communities keep their exchanges alive... This needs to be studied carefully. --- No, one exchange, one line of business was always a form of de facto monopoly. It’s too late to realize that now. --- A freak born out of KYC compliance pressures, but it’s hard to change it now. --- Can Korea pass the stablecoin legislation? Feels like Korean regulators have always been quite strict. --- Honestly, this policy has been a mess from the start. Small exchanges have no future.

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gas_fee_therapist

· 01-20 12:56

Wow, isn't this a disguised way to protect the major exchanges? Small and medium exchanges are really wronged... One set of rules for each line, honestly, just raising the market entry barrier. No wonder only big companies are thriving. Korea is again delaying until 2026, the efficiency is really impressive, crypto enthusiasts are becoming numb waiting... Regulations imposed under compliance pressure, but the result is actually creating a monopoly, which is quite ironic. Wait, will they also fail to develop stablecoins? It seems hopeless for the time being.

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ShitcoinConnoisseur

· 01-20 12:52

Here we go again. Korea is trying to dismantle the moat of the leading exchanges, but the problem is that when small and medium exchanges really start to grow, regulation will become a headache. Will it be settled only by 2026? This Korean won stablecoin will have to wait a few more years. What looks compliant on the surface is actually a capital game, just a tool for harvesting retail investors.

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TerraNeverForget

· 01-20 12:52

Here we go again with the "one exchange, one line" topic. To put it simply, big exchanges are sitting back and profiting, while smaller exchanges are being squeezed out. Submitting only in 2026? I think the Korean regulators are just dragging their feet. Under the pressure of KYC, these hidden rules are becoming more and more outrageous.

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GmGnSleeper

· 01-20 12:47

It's the same old story. Small and medium exchanges are really stuck. Banks don't want to deal with small platforms at all. Large exchanges have already established their relationships. The rules are officially unregulated, but in reality, it's a de facto monopoly.

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