South Korea’s financial regulator supports ownership limits for cryptocurrency exchanges

The Financial Services Commission (FSC) in South Korea proposes ownership caps of 15% to 20% for crypto exchanges, emphasizing their public role. Chair Lee Eog-weon stated that the exchanges should function as part of public infrastructure, aiming to limit concentrated ownership.

Under the proposed Digital Asset Basic Act, exchanges will transition from a notification system to a more robust authorization regime. While the ownership cap is a focal point of discussion, there is notable resistance from operators who fear its impact on shareholder dynamics.