FSC Proposes 15–20% Ownership Cap for Major South Korean Crypto Exchanges
South Korea's Financial Services Commission (FSC) is moving to impose strict ownership limits on dominant cryptocurrency exchanges as part of its Phase 2 Virtual Asset Act. The regulatory overhaul targets platforms like Upbit, Bithumb, Coinone, and Korbit—collectively serving 11 million users—which will now be classified as core digital asset infrastructure.
The proposed 15-20% ownership cap mirrors restrictions applied to alternative trading systems under the Capital Markets Act. This directly challenges the current landscape where founders and major shareholders maintain disproportionate control over exchange operations and revenue streams. The FSC's intervention reflects growing institutional concerns about market concentration in Korea's crypto sector.
