South Korea Weighs 20% Cap on Crypto Exchange Major Shareholders Despite No Legal Review in Five Years - bloomingbit

South Korean regulators are reportedly considering a 20% ownership cap for major shareholders of cryptocurrency exchanges. The move comes despite the fact that the relevant legal framework has not undergone a formal review in five years. If implemented, the rule would limit the maximum stake a single major shareholder can hold in a licensed exchange, potentially reshaping how these platforms are governed and controlled.

Ownership caps are typically intended to reduce concentration risk and prevent any single entity from exercising outsized influence over a trading venue. For the crypto sector, such a measure could affect existing governance structures, particularly for exchanges that rely on a few large backers. It also signals that South Korea is continuing to tighten its oversight of the digital asset industry, even as the market matures.

Market participants will likely watch whether the proposal moves forward and whether a formal legal review is initiated. The five-year gap in review suggests procedural hurdles may lie ahead. For now, the discussion highlights how South Korea is balancing exchange governance with broader priorities of investor protection and market integrity.