South Korea’s Financial Services Commission has proposed ownership limits and profit pooling measures to regulate major exchanges and encourage institutional market participation.
South Korea’s Financial Services Commission (FSC) has proposed capping major shareholders of virtual asset service providers at 15%–20% and introducing fit-and-proper reviews to prevent conflicts of interest. The proposal, now submitted to the National Assembly, targets improved governance in the crypto exchange sector. This builds on earlier considerations requiring the largest won-based exchanges—controlling over 90% of the domestic market—to pool a portion of their profits into a common fund to promote institutional involvement in digital assets.