SEOUL, South Korea – In a pivotal move for the country’s digital asset sector, executives from South Korea’s main cryptocurrency exchanges are preparing for a key meeting with lawmakers on February 4. The direct dialogue is aimed at addressing growing industry concerns about the Financial Services Commission’s (FSC) proposals that could fundamentally change exchange governance by capping the stakes of major shareholders. According to reports, the proposed limit is set between 15% and 20% and forms a core element of the second phase of South Korea’s comprehensive virtual asset law, signaling significant regulatory changes for one of the world’s most active crypto markets.
South Korean cryptocurrency exchange governance faces regulatory reform
The upcoming meeting of the Parliamentary Affairs Committee marks a critical juncture for industry leaders. News1 exclusively reports that exchange leaders plan to raise serious concerns regarding the FSC circular. The proposal aims to align the shareholder eligibility review of virtual currency exchanges with the rigorous standards applied to alternative trading systems (ATS) in traditional capital markets. This measure therefore aims to prevent excessive control by a single entity, thereby promoting market stability and investor protection. The Democratic Party’s task force has set an ambitious schedule, aiming to submit a second phase of legislation before the upcoming Lunar New Year holiday, increasing the urgency of the debate.
Industry analysts say the tightened regulations follow a global trend toward tighter oversight of digital asset platforms. However, the Korean approach uniquely integrates established financial market regulation concepts. The FSC initiative represents a deliberate effort to bridge the gap between innovative cryptocurrency companies and traditional financial governance frameworks. This meeting will therefore serve as a formal channel for the exchange of views>
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