South Korea plans to limit the equity cap of cryptocurrency exchanges to 20%, with regulatory agencies at odds with the government and the industry

The Financial Services Commission (FSC) of South Korea has proposed to limit the shareholding ratio of individuals or companies in cryptocurrency exchanges to 15-20% to avoid conflicts of interest. The FSC chairman stated that exchanges have become part of the financial system and should establish corresponding governance structures. The proposal views exchanges as public infrastructure but has faced opposition from the ruling Democratic Party and the industry.

Currently, major exchanges in South Korea are controlled by single founders or companies: Upbit operator Dunamu's founder holds 26%, Nexon owns over 60% of Korbit, Binance controls over 67% of GOPAX, and Coinone's founder holds 53%. Analysts point out that while the regulatory stance is firm, friction with the government and industry will continue, creating a potential deadlock. If the new regulations are implemented, all major exchanges will need to adjust their equity structures.