South Korea Moves to Curb Crypto Exchange Ownership Amid Regulatory Push

South Korea's Financial Services Commission (FSC) is advancing plans to impose ownership caps on major shareholders of domestic cryptocurrency exchanges, signaling a hardening regulatory stance as digital assets gain systemic importance. The proposed 15%-20% stake limitation WOULD be embedded in the forthcoming Digital Asset Basic Act, positioning exchanges alongside licensed financial infrastructure.

FSC Chairman Lee Eog-weon framed the measure as necessary governance reform, despite industry resistance and political concerns within the ruling Democratic Party. The move reflects growing scrutiny of exchange operators as South Korea's crypto market matures beyond its speculative phase.

Market observers note the parallels to traditional finance regulations, where ownership restrictions prevent undue influence. The initiative comes as global regulators increasingly treat crypto platforms as quasi-financial institutions rather than tech startups.