South Korea Advances Crypto Exchange Ownership Caps Under Digital Asset Act

South Korea's Financial Services Commission (FSC) has proposed stringent ownership caps of 15-20% for major shareholders of domestic cryptocurrency exchanges as part of its sweeping Digital Asset Act reforms. The MOVE aims to prevent concentrated control and strengthen market integrity in what regulators now classify as critical financial infrastructure.

The legislation introduces a new authorization regime that will require exchanges to meet heightened governance standards for continued operation. Parallel measures include stricter capital requirements for stablecoin issuers, reflecting global trends toward stabilizing the digital asset sector.

Lawmakers are accelerating the bill's passage ahead of the Lunar New Year deadline, with provisions addressing exchange licensing, sector-wide oversight, and investor protections. The reforms come as Korean trading volumes increasingly influence global crypto markets, particularly for altcoins like XRP, SANTOS, and decentralized finance tokens.