South Korea proposes 20% exchange ownership cap

• South Korea’s Financial Services Commission plans to submit a Basic Digital Asset Act proposal in September.
• The proposal includes a 20% ownership cap for major shareholders of virtual asset exchanges.
• The measure could affect domestic exchanges and foreign companies seeking to enter South Korea.

South Korea’s Financial Services Commission plans to submit a government proposal for the Basic Digital Asset Act in early September.

The proposed law would set a 20% ownership cap for major shareholders of virtual asset exchanges.

The Financial Services Commission is discussing the cap as part of wider rules for exchange ownership and governance.

The proposal could also allow banks and other traditional financial firms to take part in exchange governance.

The legislation is sponsored by Democratic Party lawmaker Yoo Dong-soo, who chairs the National Assembly’s Political Affairs Committee.

The proposed rules could affect South Korean exchanges and foreign companies seeking to operate in the country.

The bill would still need to progress through South Korea’s National Assembly, where its provisions could change.