South Korean Regulators Reconsider Crypto Exchange Ownership Caps

South Korean authorities are revisiting their plan to cap major shareholders' stakes in cryptocurrency exchanges. This move is part of a broader effort to regulate digital assets and reduce concentration of power. The government aims to disperse ownership, enhance market integrity, and protect investors. To ease the transition process for existing major shareholders, regulators are considering allowing them to sell their stakes without triggering market disruption.

Under the proposed plan, individual shareholders may be allowed to hold between 15% and 20% of an exchange, while consortium structures could hold more than 30%. These thresholds would represent a significant change from the current ownership landscape, where some exchanges are controlled by a single major shareholder or a small group of investors.

The decision on ownership caps will have implications for the crypto exchange industry in South Korea. Larger platforms may need to restructure their ownership, while smaller exchanges might face challenges in attracting new investors under the proposed caps.