South Korea Reviews Exchange–Bank Model in Crypto Competition Study
South Korean regulators are reviewing the 'one exchange–one bank' model due to concerns over market concentration.Summary
South Korea's financial regulators, including the Financial Services Commission (FSC) and the Fair Trade Commission, are reviewing the long-standing practice that ties each cryptocurrency exchange to a single banking partner. This model, which emerged from Anti-Money Laundering (AML) requirements, limits smaller exchanges' access to fiat on- and off-ramps, potentially reinforcing market concentration around dominant players. A government-commissioned study reportedly concluded that this pairing limits competition, as uniform compliance standards are applied disproportionately to exchanges with varying risk profiles. This review occurs as regulators prepare for the second phase of the Digital Asset Basic Act, which is currently delayed until 2026.
(Source：Cointelegraph)