Korean Crypto Alliance Challenges FSC’s Proposed Shareholding Cap
Legal experts warn proposed ownership limits for major shareholders of South Korean crypto exchanges may raise constitutional issues and conflict with international norms.
At a January 16 seminar, multiple scholars cautioned that South Korea’s proposed 15–20% ownership cap for major shareholders in crypto exchanges could face constitutional challenges and be misaligned with global regulatory trends. They recommended alternative measures, such as stricter qualifications for major shareholders and reforms to initial public offerings (IPOs), over rigid shareholding limits. The debate follows earlier opposition from the Korean Digital Asset Exchange Alliance (DAXA), which argued the cap would hinder competitiveness as the Digital Asset Basic Act nears finalization.
- Financial Services Commission (FSC): South Korea’s financial regulator responsible for overseeing banking, securities, and digital asset markets.
- Digital Asset Exchange Alliance (DAXA): An industry group representing major South Korean cryptocurrency exchanges, including Upbit, Bithumb, Korbit, Coinone, and Gopax.
- Digital Asset Basic Act: A proposed South Korean regulatory framework intended to establish comprehensive rules for the digital asset industry.