South Korea’s Financial Services Commission is backing ownership limits for crypto exchanges, signaling a tougher stance on governance as the country prepares a new regulatory framework for digital assets. FSC Chair Lee Eog-weon said exchanges should be treated as public-market infrastructure rather than ordinary private companies, aligning them more closely with securities platforms.
The proposal under discussion would cap major shareholders’ stakes at roughly 15% to 20%, a shift that could significantly reshape ownership structures at leading domestic exchanges. The measure is part of the broader Digital Asset Basic Act, which would move exchanges from a renewable registration system to a formal authorization regime with stricter oversight and governance standards.
Lawmakers are still negotiating sensitive provisions ahead of a mid-February deadline, including shareholder limits and stablecoin oversight. While capital requirements for stablecoin issuers appear close to agreement, ownership caps remain one of the most contested elements of the bill.
