South Korea Pushes 15% Ownership Cap, Forcing Exchange Restructuring

Key Takeaways

South Korea's Financial Services Commission (FSC) has publicly defended a proposal to cap individual ownership in cryptocurrency exchanges at 15-20%. The measure, part of the new Digital Asset Basic Act, would treat exchanges as public infrastructure and force significant ownership changes at the country's largest trading platforms.

1. Regulator Proposes Strict Governance: The FSC argues that as exchanges transition to a more permanent authorization regime, their governance must align with traditional securities markets, justifying an ownership cap to prevent conflicts of interest.
2. Major Exchanges Face Forced Dilution: The proposed 15-20% cap would directly impact founders of major exchanges, including Dunamu's chair (over 28% stake) and Coinone's founder (53% stake), forcing them to sell down their positions.
3. Bill Advances with Contentious Points: While lawmakers have reportedly agreed on a 5 billion won ($3.7 million) capital requirement for stablecoin issuers, the ownership cap remains a major point of contention as they work to pass the Digital Asset Basic Act by a mid-February deadline.