South Korea’s Financial Services Commission (FSC) is moving toward tighter rules for cryptocurrency exchanges.
The regulator is considering placing limits on the amount of ownership a single shareholder can hold, around 15% to 20%. The measure is part of the Digital Asset Basic Act, currently under review by the National Assembly.
According to The Korea Times, FSC Chair Lee Eog-weon said that licensed crypto exchanges should be treated differently from private companies.
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He described them as important parts of the country’s financial system, much like public infrastructure, and therefore subject to stricter governance rules.
The proposed ownership cap has faced resistance from exchange operators and has sparked debate within the ruling Democratic Party.
Details of the plan were also outlined in a recent government coordination document. It described exchanges as “core infrastructure” for the digital asset industry and warned that concentrated ownership could harm market fairness and stability.
Another major change under the proposal would shift exchanges from the current registration process, which requires renewal every three years, to a more permanent authorization system.
This change aims to make the regulation consistent with what applies to securities exchanges and alternative trading platforms.
The FSC recently reviewed a proposal to allow authorities to freeze cryptocurrency accounts immediately when manipulation is suspected. What does the proposal cover? Read the full story.
