South Korea is considering a ceiling on major shareholders’ stakes in crypto exchanges as it drafts licensing rules that could also set liability and customer-asset requirements.
The ceiling under discussion is 15% to 20%. Operating exchanges may be given a transition window of one to two years to dispose of holdings exceeding the cap. An alternative being considered would limit shareholder voting power without requiring ownership changes, amid property-rights concerns.
The Financial Services Commission (FSC) is working to align views across ministries on the proposal. The measure is expected to reach lawmakers as a bill.
The draft could impose compensation liability on exchanges following hacks or system failures without requiring proof of fault. Failure by an exchange to satisfy customer-asset holding standards could lead to suspension of operations.
For stablecoins, issuance is expected to sit with a bank-centered consortium. The Bank of Korea has said banks should lead the effort.
The government is targeting introduction of the proposal this month, though no specific day has been identified.
