{"id":69816,"date":"2026-01-29T07:01:34","date_gmt":"2026-01-29T07:01:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=69816"},"modified":"2026-01-29T07:01:34","modified_gmt":"2026-01-29T07:01:34","slug":"south-korea-plans-cap-on-crypto-exchange-ownership-despite-industry-concerns","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=69816","title":{"rendered":"South Korea Plans Cap On Crypto Exchange Ownership Despite Industry Concerns"},"content":{"rendered":"
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South Korea\u2019s Financial Services Commission (FSC) has shared its intention to move forward with the proposed cap on crypto exchange ownership despite concerns from industry players and the ruling Democratic Party of Korea (DPK).<\/p>\n

FSC Backs Ownership Cap For Crypto Exchanges<\/h2>\n

On Wednesday, Financial Services Commission Chairman Lee Eog-weon revealed that the regulatory agency is reviewing a proposal to cap major shareholders\u2019 stakes in crypto exchanges at around 15%-20%.<\/p>\n

According to The Korea Times, Lee stressed<\/a> the need to limit the ownership stakes of controlling shareholders in crypto exchanges, claiming that the move is necessary to \u201calign governance standards with the exchanges\u2019 increasing public role.\u201d<\/p>\n

He argued that \u201cexcessive concentration of ownership\u201d could increase the risk of conflicts of interest while undermining market integrity, noting that securities exchanges and other trading systems are subject to similar limits.<\/p>\n

The chairman highlighted that existing regulations<\/a> mainly focus on anti-money laundering and investor protection. The ownership cap proposal would be included in the upcoming Digital Asset Basic Act, also known as the Second Phase of the Virtual Asset User Protection Act, which is expected to serve as a comprehensive framework for the entire industry.<\/p>\n

\u201cUnder the current system, virtual asset exchanges operate under a notification system that requires renewal every three years. The proposed shift to an authorization system would effectively grant exchanges permanent operating status,\u201d Lee explained.<\/p>\n

He emphasized that \u201cthis higher status means exchanges need governance rules that match their larger role and greater responsibilities.\u201d As a result, exchanges would assume characteristics similar to public infrastructure.<\/p>\n

A joint council representing domestic crypto exchanges, including Upbit, Bithumb, and Coinone, has opposed the proposed cap, warning that it could hinder the development<\/a> of South Korea\u2019s digital asset sector.<\/p>\n

Notably, major players like Song Chi-hyung, the chairman of Dunamu, the company that operates Upbit, and Cha Myung-hoon, the founder of Coinone, would be forced to sell significant portions of their holdings if the law is enacted.<\/p>\n

The Democratic Party of Korea also expressed its concerns, observing that similar ownership caps are uncommon worldwide and could make South Korea\u2019s framework inconsistent with global regulatory trends.<\/p>\n

Lawmakers Set New Deadline For Digital Assets Framework<\/h2>\n

ChosunBiz reported<\/a> that the DPK\u2019s Digital Assets Task Force (TF) discussed key details of the Digital Asset Basic Act in a Wednesday meeting at the National Assembly members\u2019 office building, attended by government officials.<\/p>\n

According to the report, the ruling party\u2019s members did not discuss the cap on crypto exchange ownership. Still, they revealed that they will introduce the framework before the Lunar New Year holiday on February 17.<\/p>\n

DPK\u2019s Lawmaker Ahn Do-geol said, \u201cWe plan to introduce the Digital Asset Basic Act before the Lunar New Year, and we hope that by then a plan agreed upon with the government as much as possible will be put together.\u201d<\/p>\n

Instead of the \u201cunanimous consent system\u201d proposed by the Bank of Korea (BOK), the task force settled on a consultative body to discuss stablecoin authorizations, comprised of the BOK, the FSC, the Ministry of Economy and Finance, and the Financial Supervisory Service.<\/p>\n

The task force considered that requiring unanimity for stablecoin authorization would slow issuance, while observers believe that the central bank\u2019s proposal was \u201ca way to control stablecoins.\u201d<\/p>\n

In addition, the minimum statutory capital for stablecoin issuers was set at 5 billion won, approximately $3.48 million. Nonetheless, the report affirmed that there has not been an agreement on the issuance of won-pegged stablecoins.<\/p>\n

As reported<\/a> by Bitcoinist, the BOK and the FSC have been clashing over the extent of banks\u2019 role in stablecoin issuance. While the central bank has been pushing for a consortium of banks owning at least 51% of any stablecoin issuer seeking approval in the country, the FSC has expressed concerns about this proposal.<\/p>\n

Lee Kang-il, a DPK lawmaker on the task force, asserted that \u201cthe 50%+1 share rule remains contentious because there is still no willingness to concede among government ministries,\u201d but added that they have prepared a mediation plan and will \u201cmake decisions in a direction that serves the national interest overall and benefits the public.\u201d<\/p>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

South Korea\u2019s Financial Services Commission (FSC) has shared its intention to move forward with the proposed cap on crypto exchange ownership despite concerns from industry players and the ruling Democratic Party of Korea (DPK). FSC Backs Ownership Cap For Crypto Exchanges On Wednesday, Financial Services Commission Chairman Lee Eog-weon revealed that the regulatory agency is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-69816","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/69816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69816"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/69816\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}