South Korea Plans 20% Cap on Crypto Exchange Shareholder Stakes: Report

South Korea's ruling Democratic Party and the Financial Services Commission (FSC) have reportedly agreed on a plan to limit major shareholders' ownership in local crypto exchanges to a maximum of 20%. Exceptions might allow stakes up to 34% for new businesses via an enforcement decree, referencing the Commercial Act's 33.3% veto threshold. Exchanges would have three years from enforcement to comply, with smaller ones potentially getting an extra three years. Major platforms like Upbit and Bithumb, which dominate the market, would need to reduce current ownership levels, which currently exceed the proposed cap. The proposal now faces a legislative process, and some lawmakers have expressed concerns that such restrictions could negatively impact competition, slow innovation, and raise entry barriers in the sector. This follows recent moves by South Korea to tighten crypto licensing rules and increase scrutiny of VASP executives and shareholders.

(Source：Cointelegraph)