What happened?
The South Korean People Power Party (PPP) announced plans to abolish the current law that mandates exclusive banking partnerships with crypto exchanges if they win the Presidential Election. The existing law has caused many smaller exchanges to shut down due to their inability to secure such partnerships. PPP aims to open up the market by eliminating monopolies and fostering competition among cryptocurrency exchanges.
Who does this affect?
This change will primarily impact domestic cryptocurrency exchanges and banks in South Korea, particularly those unable to secure bank partnerships. It also affects South Korean crypto investors who currently have limited options for trading crypto-fiat pairs. The policy shift could create more opportunities for both existing and new players in the crypto market.
Why does this matter?
Potentially abolishing the banking partnership requirement could significantly increase competition in South Korea’s crypto market, leading to better services and more options for consumers. It might also attract international interest and investment into South Korea’s cryptocurrency sector. Such changes could lead to a more robust and innovative crypto ecosystem, potentially impacting local and global cryptocurrency markets.