Korea may slow full rollout of multi-bank partnerships for crypto exchanges

South Korea may find it difficult to fully adopt a system allowing each crypto exchange to partner with multiple banks, despite industry calls to broaden investor choice, the Seoul Shinmun reported. According to a report on second-stage virtual asset legislation and measures to strengthen anti-money laundering rules for stablecoins by South Korea’s Financial Services Commission, the Korea Institute of Finance said a full allowance for multiple-bank partnerships requires caution, as it could weaken money-laundering monitoring and further strengthen the market dominance of large exchanges. Instead of a full rollout, the institute proposed a phased approach, including a model in which exchanges can partner with several banks while each user is allowed to choose only one bank for trading.