SK ruling party opposes proposed cap on crypto exchange ownership

Opposition is growing in South Korea from the ruling Democratic Party, industry, and academia against a proposal to cap major shareholder stakes in cryptocurrency exchanges at 15-20%, ZDNet Korea reported. Within the ruling party, there is a strong consensus that strengthening regulations on unfair trading practices should be prioritized over direct ownership limits. Proponents of this view argue that strictly regulating insider trading, market manipulation, and conflicts of interest would be more effective. Concerns have also been raised that excessive ownership restrictions could stifle industry innovation and deter investment. With calls for caution also emerging from within the Democratic Party's task force on the issue, it is expected that the industry's perspective will be significantly reflected in the party's final draft of the Digital Asset Basic Act.