South Korea Plans 15–20% Ownership Cap for Crypto Exchanges Under New Digital Asset Act

TLDR

• Korea pushes strict crypto exchange ownership caps to boost market trust and stability.
• New Digital Asset Act reshapes governance, licensing, and sector-wide oversight.
• Stablecoin issuers face higher capital rules under Korea’s evolving crypto law.
• Regulators aim to curb concentrated control and strengthen crypto market integrity.
• Lawmakers race to finalize sweeping crypto reforms before Lunar New Year deadline.

South Korea advanced its Digital Asset Act as regulators signaled firm support for ownership caps on major shareholders of domestic crypto exchanges. The proposal gained momentum as policymakers linked governance reforms to the growing role of digital asset platforms. The plan also aligned with wider efforts to strengthen oversight across the expanding virtual asset sector.

Regulator Pushes Forward With Exchange Ownership Limits

South Korea’s financial regulator moved to establish a 15–20% ownership cap for key shareholders under the Digital Asset Act. The Financial Services Commission reviewed the measure and argued that concentrated control could weaken market integrity. The agency also emphasized that crypto exchanges now operate as critical market infrastructure.

The FSC signaled that the new authorization regime under the Digital Asset Act would grant exchanges lasting operating status. This shift increased demands for stronger governance rules and clearer standards for shareholder suitability. Regulators positioned the ownership limit as a structural safeguard for long-term stability.

Domestic exchanges raised objections as they assessed the impact on existing ownership structures. Several operators hold larger stakes that exceed the proposed ceiling, and restructuring may become necessary. The regulator acknowledged the industry pushback but maintained that comparative rules already exist in securities markets.

Political Debate Continues as Lawmakers Shape Final Bill

Lawmakers continued to refine the Digital Asset Act as they balanced regulatory objectives with market concerns. The ruling Democratic Party reviewed the ownership cap and questioned its global alignment. Discussions remained active because officials viewed governance oversight as a central theme of the legislation.

The party prepared to submit the Digital Asset Act before the Lunar New Year deadline. Transitioning crypto exchanges from a renewal system to an authorization framework remained a key feature of the bill. The proposal strengthened supervisory powers and defined new approval thresholds for high-risk digital asset businesses.

The Digital Asset Act introduced eight categories of digital asset firms, including custodial and wallet services. High-risk segments required authorization, while others faced simplified registration. This structure aimed to set clear boundaries and reduce regulatory ambiguity across the digital asset market.

Stablecoin Requirements and Oversight Structure Also Advance

The Digital Asset Act also proposed a minimum capital requirement of 5 billion won for stablecoin issuers. Lawmakers said the figure aligned with existing rules for electronic money providers, and they planned further coordination with regulators. The requirement aimed to ensure stronger liquidity support and operational resilience.

A new Virtual Asset Committee would oversee crisis response across the sector. The FSC chair would lead the body, while central bank and ministry officials would support its work. This structure created a unified framework for handling systemic disruptions.

Several policy points remained unresolved, including rules for won-denominated stablecoin issuance. Lawmakers expected additional negotiations before the Digital Asset Act reached a final vote. The ongoing deliberations signaled that South Korea planned a comprehensive regulatory approach for its expanding crypto ecosystem.

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