South Korea’s financial regulator proposes ownership limits for crypto exchanges under the Digital Asset Basic Act, aiming for stricter governance. The proposal suggests capping major shareholders’ stakes at 15-20%, sparking resistance from exchange operators and concerns within the Democratic Party.

The ownership cap is part of the Digital Asset Basic Act to regulate exchanges as core infrastructure for the digital asset market. The proposal aims to prevent concentrated ownership from undermining market integrity, shifting exchanges to a more durable operating status under an authorization regime.

If enacted, the ownership cap could lead to restructuring at major exchanges like Dunamu and Coinone, affecting their ability to attract strategic shareholders. Lawmakers are still negotiating the proposal, with a minimum capital requirement of $3.7 million set for stablecoin issuers under the bill.

The ruling Democratic Party plans to introduce the Digital Asset Basic Act before the Lunar New Year holiday, but sensitive topics like shareholder caps and the central bank’s role are still under discussion. The bill must undergo committee review and a National Assembly vote before becoming law.

Read more at Cointelegraph: FSC Chair Defends Proposed Crypto Exchange Ownership Caps in South Korea