South Korea to cap crypto exchange ownership at 20% with 3-year grace period

South Korean lawmakers are reportedly finalizing plans to cap major shareholder stakes in cryptocurrency exchanges at 20% as part of a new digital asset basic act. According to The Herald Business, the ruling Democratic Party's digital asset task force and South Korea's Financial Services Commission (FSC) discussed the proposal yesterday. The plan would allow for exceptions of up to 34% ownership, subject to FSC approval via an enforcement decree. A three-year grace period for compliance after the law takes effect was also agreed upon. However, a differentiated standard would grant smaller exchanges like Coinone and Korbit an additional three-year extension. The Democratic Party's Policy Committee is expected to agree on a bill incorporating these measures following a closed-door meeting with the FSC tomorrow morning.