South Korea Proposes 20% Ownership Cap for Crypto Exchange Shareholders

South Korea is on the cusp of introducing a landmark regulation for its cryptocurrency market, with policymakers mulling an ownership cap for major shareholders of exchange platforms. The proposed Digital Asset Basic Act seeks to limit major shareholder stakes in exchanges to 20% under a strict interpretation, although exceptions up to 34% may be allowed through enforcement decrees.

The move is part of the government's efforts to integrate digital asset platforms into a formal financial regulatory framework. Regulators argue that concentrated ownership structures could raise concerns about governance transparency, potential conflicts of interest, and investor protection.