South Korea Closes Loopholes with New Crypto Exchange Ownership Rules

South Korea's Financial Services Commission (FSC) is set to introduce new regulations aimed at promoting a more transparent and accountable cryptocurrency market.

The FSC, in collaboration with the ruling party, has agreed to cap major shareholder ownership in crypto exchanges at 20%. This move is part of a broader effort to reduce concentration risks within these platforms and ensure that no single investor dominates decision-making processes.

According to industry experts, high ownership concentration can create operational and financial risks for exchanges, which often serve as critical infrastructure for the digital asset market. By limiting shareholder stakes, regulators hope to prevent governance issues and promote more robust compliance practices.