Crypto: South Korea Regulator Backs Ownership Caps For Crypto Exchanges
The Financial Services Commission chief says ownership limits are still under negotiation as lawmakers debate the Digital Asset Basic Act ahead of a mid-February deadline.
South Korea’s top financial regulator said crypto exchanges should face ownership limits similar to those applied to securities markets, signaling a harder public stance on governance reforms under the country’s proposed Digital Asset Basic Act.
According to a report by The Korea Times, the Financial Services Commission (FSC) Chair Lee Eog-weon said licensed crypto exchanges should no longer be treated as ordinary private companies but as entities with public-infrastructure characteristics.
Lee’s comments come as the FSC reviews a proposal to cap major shareholders’ stakes in crypto exchanges at around 15% to 20%, a measure that has drawn resistance from exchange operators and raised concerns within the ruling Democratic Party.
While the ownership cap has been under discussion for weeks, Lee’s remarks are the clearest backing yet from the FSC, signaling its preference to press ahead with stricter governance standards as platforms move toward a formal authorization regime.
The ownership limit was outlined earlier this month in a policy coordination document submitted to the National Assembly as part of preparations for the Digital Asset Basic Act, according to Yonhap News Agency.
The report described exchanges as “core infrastructure” for the digital asset market and argued that concentrated ownership could undermine market integrity.
Under the proposal, crypto exchanges would shift from a notification system that requires renewal every three years to an authorization regime granting more durable operating status.
Related: Why South Korea is struggling to decide who can issue stablecoins
Lee said that the shift warrants governance rules aligned with securities exchanges and alternative trading systems. This includes ownership caps and suitability reviews.
Source: CoinTelegraph
