South Korea’s Monetary Providers Fee Chairman Lee Eog-weon highlighted the necessity to restrict possession stakes of main shareholders in digital asset exchanges. He stated the transfer is important to align governance requirements with the exchanges’ rising public function.
The proposed possession limits come amid broader regulatory strikes in South Korea’s crypto market. The federal government is getting ready to broaden anti‑cash laundering guidelines by extending the crypto Journey Rule to transfers beneath $680.
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The change follows the Digital Asset Customers Safety Act, which took impact in July 2025 and bans insider buying and selling, market manipulation, and unlawful buying and selling of digital belongings. Exchanges will now be required to gather and share sender and receiver data for smaller transfers.
The remarks recommend the regulator plans to push forward with the proposal regardless of resistance from business members and considerations from the ruling Democratic Get together of Korea.
The FSC is reportedly reviewing a cap of about 15 to twenty p.c on controlling shareholders’ stakes. The availability is anticipated to be included within the tentative Digital Asset Primary Act, thought-about the second section of the nation’s digital asset laws.
Monetary Providers Fee Chairman Lee Eog-weon formally careworn Wednesday the necessity to restrict the possession stakes of main shareholders in digital asset exchanges.https://t.co/zpV4sxM29I
— The Korea Occasions (@koreatimescokr) January 28, 2026
South Korea Targets Possession Focus Dangers
Lee stated current guidelines, together with the Act on Reporting and Utilizing Specified Monetary Transaction Data and the Act on the Safety of Digital Asset Customers, focus primarily on anti-money laundering and investor safety. “The proposed shift to an authorization system would successfully grant exchanges everlasting working standing,” he stated, including that exchanges would wish governance guidelines that mirror their bigger function.
He famous that when licensed, exchanges would not be handled merely as personal enterprises however would assume traits just like public infrastructure. “Extreme focus of possession may enhance the chance of conflicts of curiosity and undermine market integrity,” Lee stated. He additionally identified that securities exchanges and various buying and selling programs already face possession limits.
The proposal is a part of an effort to combine crypto exchanges into the mainstream monetary system, enhancing accountability, transparency, and public oversight.
Upbit, Coinone Stakes Could Be Capped
The joint council of home exchanges, together with Upbit, Bithumb, and Coinone, has opposed the cap, warning it may hinder the sector’s growth. At Upbit, Chair Track Chi-hyung and associated events maintain over 28 p.c of shares, whereas Coinone founder Cha Myung-hoon controls about 53 p.c.
Lee stated discussions with the ruling celebration are ongoing. “Consultations with the Nationwide Meeting and related ministries will proceed to make sure the invoice strikes ahead with out pointless delays,” he stated.
