South Korean banks are scrambling to team up with cryptocurrency exchanges following recent changes in the country’s crypto regulations. This surge in partnerships comes after a significant shift in the regulatory landscape.
New Rules, New Partnerships
Last week, the Financial Services Commission (FSC) announced a pilot program starting in the second half of 2025. This program will allow around 3,500 businesses to legally buy crypto for investment and financial purposes. This is a big deal, as corporate crypto transactions have been banned since 2017.
Major Exchanges Lead the Way
News reports indicate that Upbit, South Korea’s largest crypto exchange, has already partnered with K Bank. Bithumb, the second-largest exchange, has also made a move, switching its banking partner from Nonghyup Bank to KB Kookmin Bank, the country’s biggest bank. These partnerships signal a significant shift in the industry.
The FSC’s Plan for Growth and Safety
The FSC expects this pilot program to significantly boost corporate involvement in the crypto sector. However, they also plan to enhance safety measures. This includes creating transaction guidelines to help banks verify the source of funds and the purpose of transactions. The guidelines will also cover things like third-party custody services for exchanges and increased transparency for investors. Ultimately, whether a company gets a real-name verified account will depend on a thorough vetting process by both the banks and the exchanges.
