South Korea Plans 15-20% Ownership Cap for Digital Asset Exchanges

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TLDR

South Korea’s Financial Services Commission supports a 15-20% ownership cap for major shareholders in digital asset exchanges.
The proposal aims to improve governance standards as digital asset exchanges play a larger public role in the crypto industry.
Local crypto organizations such as DAXA have expressed opposition, arguing the caps could hinder the development of the industry.
The new ownership limits are part of South Korea’s broader efforts to regulate the digital asset market through the Digital Asset Basic Act.
South Korea’s FSC plans to shift digital asset exchanges from a notification system to an authorization system for permanent operating status.

South Korea’s Financial Services Commission (FSC) has announced support for a proposal to cap the ownership stakes of major shareholders in digital asset exchanges. FSC Chairman Lee Eog-weon emphasized that limiting these stakes is necessary to ensure fair governance as exchanges continue to grow in influence. Despite opposition from local crypto industry players, Lee confirmed that the proposal is part of the broader legislative framework under the Digital Asset Basic Act.

Ownership Limits on Major Shareholders in Crypto Exchanges

South Korea’s FSC seeks to impose a cap on the ownership stakes of major shareholders in digital asset exchanges. Chairman Lee Eog-weon explained that the new limits would be set at around 15-20%. He stressed that such measures align with the growing public role of crypto exchanges and aim to improve governance standards.

The proposal has faced resistance from organizations like the Digital Asset eXchange Alliance (DAXA), which represents local exchanges. DAXA warned that ownership limits could hinder the development of the virtual asset industry in South Korea. However, Lee responded by pointing out that excessive concentration of ownership could create conflicts of interest and undermine market integrity.

The era of founder-led giants is facing a major shift.

South Korean regulators are pushing for a 15% to 20% ownership cap for major shareholders of crypto exchanges.

The FSC argues that exchanges like Upbit and Bithumb have become "core public infrastructure" and must adopt… pic.twitter.com/p9y1Ub48BQ

— Conor Kenny (@conorfkenny) January 28, 2026

South Korea’s Approach to Digital Asset Regulation

The ownership cap proposal is part of South Korea’s broader efforts to regulate the crypto industry. Under current legislation, digital exchanges operate under a notification system with a three-year renewal requirement. Lee revealed that the FSC aims to shift to an authorization system, granting exchanges permanent operating status in the country.

Lee emphasized that this shift would require exchanges to adopt governance rules that match their growing responsibilities. He noted that other trading systems, such as securities exchanges, already have ownership limits in place. According to Lee, these rules are necessary for ensuring transparency and accountability within the crypto industry.

Despite the FSC’s stance, the ruling Democratic Party of Korea and DAXA have raised concerns over the proposal. They argue that such ownership caps are uncommon internationally and could put South Korea out of step with global trends. However, Lee assured that he remains in talks with the party and is working to resolve any disagreements regarding the scope and timing of the legislation.