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.
Ownership caps move from policy draft to public defense
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.
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Lee said that the shift warrants governance rules aligned with securities exchanges and alternative trading systems. This includes ownership caps and suitability reviews.
Domestic exchanges reportedly warned that such limits could disrupt existing ownership structures.
The Korea Times reported that Dunamu Chair Song Chi-hyung and related parties hold more than 28% of the company’s shares, while Coinone founder Cha Myung-hoon controls a majority stake of 53% from the exchange.
If enacted, the ownership cap would likely force restructuring at some of the country’s largest exchanges and could affect their ability to attract or retain strategic shareholders.
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Stablecoin capital requirement set at $3.7 million
Lawmakers signaled that the proposal is still being negotiated. According to a report by the Maeil Business Newspaper, the ruling Democratic Party plans to introduce the Digital Asset Basic Act before the Lunar New Year holiday on Feb. 17.
However, sensitive topics, including the shareholder caps and the central bank’s role, remain under final coordination.
The bill had already experienced prior delays because of disagreements over stablecoin issuer oversight concerns.
Maeil reported that lawmakers agreed on other elements of the bill, including setting a minimum capital requirement of 5 billion won ($3.7 million) for stablecoin issuers, but acknowledged that ownership caps remain one of the most contentious provisions.
The bill would still need to clear committee review and a National Assembly vote before becoming law.
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