South Korean Regulator Advocates Stakes Cap for Crypto Exchanges

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In a significant policy development, South Korea’s chief financial regulator has endorsed placing ownership ceilings on cryptocurrency exchanges. The model mirrors limits used in securities markets and is part of broader legislative reforms.

Chair Lee Eog-weon of the Financial Services Commission argued that licensed exchanges possess public-infrastructure attributes. This reclassification justifies stronger regulatory oversight compared to ordinary private companies.

The review involves capping major shareholdings at approximately 15% to 20%. Exchange operators have resisted the measure, and concerns have also emerged within the Democratic Party.

Lee’s statement represents the most definitive support from the FSC for the cap. It signals a determined push for rigorous governance standards as the industry moves under an official authorization framework.