South Korea Considers Deregulating Crypto Exchange-Banking Partnerships
- South Korea is reviewing its “one crypto exchange, one bank” policy to enhance market competition.
- Current regulations limit exchanges to a single banking partner, potentially leading to monopolistic practices.
- Research indicates that the Korean won-denominated market is dominated by one or two major players, affecting liquidity.
- Proposals include allowing cryptocurrency derivatives and corporate account transactions.
- An announcement on regulatory changes is anticipated by year-end as discussions continue among financial authorities.
The potential deregulation aims to address concerns over market concentration and improve access for smaller exchanges, while also integrating the crypto sector into legal frameworks.
These regulatory shifts could significantly impact the South Korean market, which has seen listed companies allowed to invest up to 5% of their equity in assets like Bitcoin and Ethereum.
