Woofun AI reports that South Korea's Financial Services Commission (FSC) has launched a comprehensive survey targeting KRW-based virtual asset exchanges and their banking partners to evaluate the feasibility of relaxing the one-exchange, one-bank rule. This initiative specifically probes the structural adjustments required for real-name account issuance and the admission of corporate clients into the market. Since 2021, regulators have mandated that each exchange handling won transactions maintain a singular partnership with a licensed bank to issue real-name accounts. While this framework was engineered to bolster anti-money laundering (AML) oversight and consumer protection, it has inadvertently stifled competition and erected high barriers for smaller entrants.

The current regulatory environment has resulted in extreme market consolidation, with only four major platforms—Upbit, Bithumb, Coinone, and Korbit—successfully securing the necessary banking partnerships. Consequently, these entities dominate the landscape while new exchanges face prohibitive entry costs. The FSC's inquiry now demands detailed projections from exchanges and banks regarding how loosening these constraints would impact critical performance metrics. Key data points under review include potential shifts in user acquisition numbers, total KRW deposit volumes, and average daily trading activity levels.

Woofun AI data shows that industry discussions have already outlined several alternative structural models to replace the current rigid framework, though the FSC has not yet signaled a preference for any specific approach. These proposals remain in the conceptual phase, with the survey results intended to directly inform future regulatory proposals. The potential dismantling of the one-to-one rule represents a pivotal moment that could fundamentally reshape South Korea's virtual asset ecosystem by removing long-standing barriers to entry. Allowing institutional investors and businesses to open real-name accounts would mark a decisive departure from the market's current retail-focused orientation.

South Korea stands as one of the world's most active cryptocurrency markets, characterized by intense retail participation but historically minimal institutional involvement due to these restrictive policies. A strategic policy shift could unlock significant new capital flows and deepen market liquidity, albeit necessitating more robust AML and investor protection protocols. This move aligns with broader global trends where jurisdictions like Hong Kong, Singapore, and the European Union are advancing clearer frameworks for institutional digital asset participation. The FSC's willingness to solicit industry feedback indicates that corporate entry is being actively considered, even if immediate policy revisions are not anticipated. This development marks a critical juncture where mature markets attempt to balance financial innovation with systemic stability.