South Korea Moves to Curb Concentrated Ownership of Crypto Exchanges

The South Korean financial regulator is pushing for ownership ceilings on cryptocurrency exchanges, modeling the approach on existing securities market safeguards. This is a key element of the forthcoming Digital Asset Basic Act.

Lee Eog-weon, Chair of the Financial Services Commission, stated that licensed exchanges should be treated as public-infrastructure entities. This redefinition elevates their societal role and regulatory obligations.

A specific threshold of 15% to 20% for major shareholdings is being considered. The measure faces opposition from within the crypto industry and has caused unease among some ruling party legislators.

The FSC Chair’s remarks constitute the clearest high-level endorsement of the ownership cap. They signal the regulator’s firm intention to elevate governance standards as the industry enters a licensed phase.