South Korea plans to limit the equity limit of cryptocurrency exchanges to 20%

The Financial Supervisory Commission (FSC) of South Korea has proposed limiting the shareholding of individuals or businesses in cryptocurrency exchanges to 15% -20% to avoid conflicts of interest. The FSC chairman stated that the exchange has become a part of the financial system and should establish corresponding governance structures. The proposal considers the exchange as a public infrastructure, but has been opposed by the ruling Democratic Party and the industry. At present, all major exchanges in South Korea are controlled by a single founder or enterprise, including Upbit operator Dunamu founder holding 26% of the shares, Nexon holding over 60% of Korbit, Binance controlling over 67% of GOPAX, and Coinone founder holding 53% of the shares. If the new regulations are implemented, all major exchanges will need to adjust their equity structures.