South Korean authorities settle on 20% ownership cap for crypto exchanges: report

South Korean regulators and legislators have agreed to impose a 20% ownership cap on major shareholders of cryptocurrency exchanges, according to a report from the Korea Herald following a meeting between the ruling Democratic Party's digital asset task force and the Financial Services Commission (FSC). The agreement allows for exceptions up to 34% as defined by the FSC through enforcement decrees. Major exchanges like Upbit and Bithumb, where current ownership significantly exceeds this limit, would receive a three-year grace period after the legislation is enacted, with smaller exchanges getting an additional three years to comply. This proposed limit, intended to address governance risks from concentrated ownership, has faced strong opposition from the Digital Asset Exchange Alliance (DAXA), which argued it would impede industry growth. The ownership cap is expected to be incorporated into South Korea's upcoming comprehensive crypto legislation, the Digital Asset Basic Act.

(Source：The Block)