Published & Updated: January 20, 2026
South Korea’s Financial Services Commission (FSC) is advancing amendments to the Digital Asset Basic Act that will officially scrap the long-standing “one exchange-one bank” restriction in 2026. This pivotal change ends the mandatory single banking partner rule for virtual asset service providers (VASPs) and allows multiple banking relationships, reducing operational bottlenecks, improving liquidity, and making KRW on/off-ramps more accessible. For global platforms like Tapbit, this opens significant opportunities to expand Korean user access with compliant, low-fee trading. This guide explains the regulatory shift, timeline, market impact, and how Tapbit traders can benefit.
South Korea Crypto Regulation 2026 – Key Changes at a Glance
| Aspect | Current Rule (2020–2025) | Proposed Change (2026) | Impact on Exchanges & Traders |
|---|---|---|---|
| Banking Partner Limit | One exchange = one bank only | Multiple banks allowed | Faster KRW ramps, better liquidity, reduced single-bank risk |
| Real-Name Account Requirement | Mandatory (strict KYC) | Maintained + streamlined | Compliance remains, but easier onboarding |
| KRW Fiat Pairs | Limited to Upbit, Bithumb, Coinone, Korbit | Expanded to licensed VASPs | More competition → lower fees & better spreads |
| Virtual Asset User Protection Act | Enforced since 2024 | Full integration with new rules | Stronger investor protection, higher trust |
| Expected Implementation | — | 2026 (likely H2) | Significant volume growth in KRW pairs |
Why South Korea Is Ending the One-Bank Rule in 2026
The FSC and Ministry of Economy and Finance have identified the single-bank restriction as a major bottleneck:
- Liquidity constraints: Exchanges were forced to rely on one bank, leading to high fees and slow settlements
- Competition stifling: Only four major exchanges (Upbit, Bithumb, Coinone, Korbit) could offer KRW pairs, limiting innovation
- Global competitiveness: Other Asian hubs (Singapore, Hong Kong, Japan) already allow multi-bank access
- User protection: Diversified banking reduces systemic risk if one partner fails
This aligns with the broader **Digital Asset Basic Act** (passed 2024, full enforcement 2026) and complements the **Virtual Asset User Protection Act** (2024).
Market Impact – Opportunities for Traders & Platforms
Positive Effects:
- More KRW trading pairs → higher volume on global exchanges like Tapbit
- Lower fees & better spreads due to competition
- Easier onboarding for Korean users (faster fiat ramps)
- Increased liquidity for major pairs (BTC/KRW, ETH/KRW)
Potential Risks:
- Stricter KYC & real-name verification for all VASPs
- Short-term regulatory confusion during transition
- Possible capital controls if geopolitical tensions rise
Technical & Trading Implications for Korean Users on Tapbit
Tapbit already supports KRW deposits via P2P and third-party gateways. Post-deregulation:
- Expect faster KRW on/off-ramps & more direct banking partners
- Lower fees on KRW pairs (e.g. BTC/KRW, ETH/KRW)
- Increased liquidity for Korean traders
Conclusion
South Korea’s planned repeal of the “one exchange-one bank” rule in 2026 under the Digital Asset Basic Act marks a major liberalization of its crypto market — Asia’s largest by retail volume. By allowing multiple banking partnerships, the FSC aims to boost liquidity, reduce costs, and enhance competition for VASPs. For global platforms like Tapbit, this creates significant opportunities to attract Korean traders with compliant, low-fee trading. The transition will be gradual, but the long-term impact on KRW crypto pairs and user access is expected to be transformative.
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Disclaimer: This article is for informational purposes only and does not constitute investment or financial advice. Cryptocurrency markets are highly volatile and subject to regulatory changes. Always conduct your own research (DYOR).
