As per Bijiwang, South Korea's Financial Services Commission (FSC) has proposed limiting ownership stakes of major shareholders at the country's four largest crypto exchanges—Upbit, Bithumb, Coinone, and Korbit—to between 15% and 20%. The FSC designated these exchanges, with a combined user base of 11 million, as 'core infrastructure' for virtual asset circulation. It cited concerns over excessive control by a small group of founders and shareholders, as well as the concentration of large operational profits in the hands of a few individuals. The proposal includes establishing a shareholder suitability review system similar to the Alternative Trading System (ATS) under the current Capital Market Act, which prohibits any single entity from holding more than 15% of voting shares.
South Korea's FSC Proposes 15%-20% Ownership Cap for Major Crypto Exchange Shareholders
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Summary
South Korea's Financial Services Commission (FSC) has proposed capping ownership stakes at major crypto exchanges to 15%-20%. The rule targets Upbit, Bithumb, Coinone, and Korbit, which have 11 million users combined. The FSC labeled them as 'core infrastructure' for virtual assets. The plan aims to prevent excessive control by a small group of founders and prevent profit concentration. The ownership limit mirrors the ATS system under the Capital Market Act, which also bars single entities from owning more than 15% of voting shares. The move comes amid ongoing crypto exchange news about governance and security, following several high-profile exchange hack incidents globally.
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