South Korean regulators have announced the formal abolition of the long-standing 'one exchange, one bank' rule, alongside the legalization of cryptocurrency derivatives trading and the opening of corporate real-name accounts for digital asset trading. The reforms mark a major shift in the country's digital asset regulatory framework, aimed at dismantling market monopolies and enhancing liquidity and competition.
Key Reforms
Although not imposed by statute, the 'one exchange, one bank' restriction had been strictly enforced due to anti-money laundering concerns, limiting exchange competition and user choice. Its removal will allow exchanges to partner with multiple banks, fostering a more competitive landscape. Crypto derivatives trading (e.g., futures and options) will be legally recognized for the first time, requiring licensed exchanges to meet capital and risk management standards. Corporate accounts will also be permitted, enabling institutional investors to enter the market and injecting fresh capital.
Legislative Progress
These measures will be incorporated into Phase 2 of the Digital Asset Basic Law and submitted to the National Assembly. Sources indicate the bill enjoys bipartisan support, making passage highly likely. South Korea's current crypto regulation mainly relies on the Act on Reporting and Use of Specific Financial Information; the new law will create a comprehensive framework covering exchanges, token issuance, stablecoins, and derivatives.
Market Outlook
Industry analysts suggest scrapping the one-exchange-one-bank rule will significantly reduce compliance costs and barriers for exchanges, potentially triggering a new wave of licensing applications. The legalization of derivatives signals a shift from restrictive to constructive regulation, which could attract global capital. However, the Financial Supervisory Service emphasizes that exchanges must still adhere to strict AML obligations, and corporate accounts require KYC verification. The new rules are expected to take effect between late 2026 and early 2027.
South Korea's move aligns with global trends in Turkey, Ghana, and other nations that are moving from banning crypto to regulating it. Investors should note that South Korea still maintains restrictions on retail leveraged trading, meaning regulatory flexibility remains limited.