The Currency analytics
By Jean-Luc Maracon
South Korea's Financial Services Commission wants to cap crypto exchange ownership at 15% to 20% per shareholder.
FSC officials have been talking about these limits behind closed doors for weeks now, according to sources familiar with the discussions.
Multiple exchange hacks hit South Korean crypto traders hard, wiping out millions in investor funds and sparking angry protests outside government buildings.
Upbit and Bithumb control most of South Korea's crypto trading volume between them, making them obvious targets for the new rules.
The Digital Asset Basic Act covers way more than just ownership caps. Anti-money laundering requirements will get stricter, customer protection rules will expand, and exchanges…
"It's about finding the right balance," a senior FSC official said, requesting anonymity because discussions are still ongoing.
But finding that balance isn't easy when you're dealing with an industry that changes so fast.
Global crypto watchers are split on South Korea's approach. Some see it as a smart way to prevent market manipulation and protect regular investors from getting burned.
A Upbit spokesperson said on February 10, 2026, that the company is reviewing its shareholder structure to prepare for possible regulatory changes.
South Korea's National Assembly finance committee held hearings on February 12, 2026, to discuss the economic impact of the Digital Asset Basic Act.
Banks are nervous too. KB Kookmin Bank and other major lenders that provide services to crypto exchanges met with FSC officials on February 13, 2026, to voice concerns about…
Korea Blockchain Association submitted a formal letter to the FSC on February 11, 2026, outlining potential problems with the ownership caps.
International exchanges are watching closely. Binance has been talking with South Korean regulators about the proposed changes, though a company spokesperson wouldn't share…
The FSC scheduled a public hearing for March 2026 where stakeholders can formally comment on the Digital Asset Basic Act.
No final decision timeline has been announced yet. The FSC says it needs more time to review feedback and study potential market impacts before moving forward with any ownership…