South Korea Targets 15-20% Cap on Exchange Shareholder Ownership

, South Korea is seriously tightening its grip on crypto exchanges by proposing legislation that moves platforms away from a reporting framework to a strict licensing system. The Financial Services Commission (FSC) is actively reconciling differences between various government ministries before targeting a public introduction this month.

The proposed ceiling for major exchange shareholders is currently set between 15% and 20%. To manage transitions, existing platforms may be granted one to two years to sell any shares that exceed this limit. Another option under consideration allows regulators to restrict voting rights while maintaining ownership stakes.

The new law also carries heavy penalties, potentially making exchanges liable for no-fault compensation if a hack or system failure occurs. Furthermore, failing to meet core requirements for holding user crypto assets could trigger the suspension of an entire platform's operations.

In the stablecoin sphere, the Bank of Korea (BOK) is set to lead issuance through a centralized bank-centered consortium. This shift addresses previous gaps in South Korea's digital asset bill, which the government plans to introduce this month, likely as a lawmaker-sponsored bill.

Entities: [

South Korea, Financial Services Commission (FSC), Bank of Korea (BOK)] , crypto_tag: null