South Korea Proposes Crypto Exchange Ownership Cap
Generally Speaking, South Korea is taking a major step to change its cryptocurrency landscape by proposing a cap on ownership stakes in virtual-asset exchanges. Normally, The Financial Services Commission (FSC) leads the effort, hoping the new rule will line up exchange governance with their growing role in finance, and You can see why they want to do this. Obviously, This is a big deal because it will affect many people, including You, and Your investments in cryptocurrency.
Why the Change?
Apparently, FSC Chairman Lee Eog-weon says exchanges are no longer just private businesses, they are becoming public-infrastructure-like entities, which is a pretty big change. Usually, He told reporters that as exchanges gain permanent operating status, their governance must reflect this shift, and You can understand why he thinks this way. Clearly, He warned that concentrated ownership could spark conflicts of interest and damage market integrity, drawing parallels with rules that already bind securities exchanges and alternative trading systems, which is a good point.
Industry Pushback and Concerns
Interestingly, A joint council of domestic exchanges, including Upbit, Bithumb, and Coinone, pushed back hard, arguing the cap could choke innovation and slow growth, which is a valid concern. Normally, Upbit’s chair, Song Chi-hyung, and his allies currently hold over 28 % of the firm, while Coinone’s founder Cha Myung-hoon controls roughly 53 %, both would have to slash their stakes dramatically, which would be a big change for them. Obviously, The FSC stays determined, and it’s holding talks with the National Assembly and relevant ministries, aiming to move the proposal forward without needless delays, which is good to know.
Broader Regulatory Shifts
Generally, This move rides a larger wave of reforms, and in July 2025, the Virtual Asset Users Protection Act kicked in, cracking down on insider trading, market manipulation, and illegal activity, which is a positive step. Usually, The government is widening anti-money-laundering measures by applying the Travel Rule to crypto transfers under $680, forcing exchanges to collect and share sender-and-receiver info, which will help to prevent illegal activities.
What’s Next?
Apparently, The FSC’s proposal mirrors a global trend of tighter scrutiny over crypto markets, and by limiting ownership, South Korea hopes to curb undue influence from a few big players while still encouraging competition and transparency, which is the goal. Normally, Success will hinge on balancing strict regulation with the need to nurture innovation in this fast-moving sector, and As talks continue, the Korean crypto industry watches closely, aware that the outcome could set a precedent for other nations grappling with how to regulate virtual-asset exchanges, which is very important.
