FSC seeks to cap major shareholder stakes at top crypto exchanges

South Korea’s Financial Services Commission (FSC) is pursuing strict new regulations to overhaul the governance structure of the country's four largest virtual asset exchanges, KBS reported. The measures are reportedly part of the forthcoming second phase of virtual asset legislation, which also covers stablecoin issuance requirements and market legalization. The FSC stated that there is an issue with a small number of founders and shareholders exercising excessive control over exchange operations. To address this, the commission plans to establish a major shareholder eligibility review system comparable to the one for Alternative Trading Systems (ATS) under the Capital Market Act. The FSC has proposed limiting a major shareholder's ownership stake to between 15% and 20%. If the government's plan is implemented, it could directly impact Dunamu, the operator of the Upbit exchange. Dunamu Chairman Song Chi-hyung holds a stake of around 25%, meaning he would be forced to sell up to 10% of his shares. The regulatory push comes as Dunamu is pursuing a de facto merger with Naver Financial through a comprehensive stock swap, raising the possibility that the proposed cap could become a significant variable in the deal.