South Korean banks push for looser cryptocurrency collaboration rules: report.

South Korean banks are lobbying for more flexible laws governing their relationships with cryptocurrency companies. This action is part of a larger attempt to boost collaboration and strengthen the country's cryptocurrency scene.

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Leaders of South Korea's biggest banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, as well as provincial banks like Jeonbuk Bank and Toss Bank, have pushed lawmakers to relax present regulations. They suggest allowing local crypto exchanges to collaborate with several banks instead of the present one-to-one arrangement.Currently, South Korean cryptocurrency exchanges must collaborate with banks to provide fiat-to-crypto services, which necessitates consumers registering real-name bank accounts for anti-money laundering purposes.

The exclusive partnership approach has benefitted certain banks, such K-Bank, which witnessed strong user growth after collaborating with Upbit.South Korea is likewise considering to relax limits on institutional cryptocurrency investment. The Financial Services Commission (FSC) intends to allow legal entities to invest in cryptocurrencies, beginning with non-profits and subsequently expanding to other companies.

The FSC is developing complete criteria for institutional cryptocurrency investment, which are expected by the third quarter of 2025. This move underscores South Korea's developing view on cryptocurrency, which is heading toward a more regulated and open environment.These reforms reflect a fundamental shift in South Korea's approach to cryptocurrency regulation, with the goal of fostering a more inclusive and competitive market.