South Korean Cryptocurrency Exchange: Democratic Advisor Questions Proposed Ownership Limit

MEVSandwichMaker · 2026-02-13T13:17:50+00:00

South Korea is considering limiting share ownership in cryptocurrency exchanges to 15-20% to reduce risks. However, advisors argue that a strong legal framework and better oversight are needed to create a healthy market environment and address deeper issues.

MEVSandwichMaker

2026-02-13 13:17:50

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Recently, South Korean authorities have been considering a policy to control ownership rights on cryptocurrency exchanges. Additionally, advisors from the Digital Asset Task Force of the Democratic Party have publicly questioned the feasibility of this approach, sparking an important debate within the crypto industry.

Core Issue: Limiting 15-20% Ownership Rights

The Financial Services Commission of South Korea is proposing to limit the shareholding ratio of major shareholders on cryptocurrency exchanges to 15-20%. According to NS3.AI, this move aims to minimize potential risks and protect the market from negative impacts caused by large digital asset holders.

However, Democratic advisors argue that this approach is not comprehensive. They point out that relying solely on ownership limits may be insufficient to address the deeper issues of the market. Instead, they recommend engaging in a more in-depth dialogue about the nature of these risks.

Alternative Proposal: Strengthening the Legal Framework Instead of Restricting Rights

Experts from the Democratic Party suggest a different risk management approach. Instead of imposing rigid ownership restrictions, they emphasize the need for strong legal frameworks and effective oversight mechanisms.

According to the advisors, a combination of strict supervision, clear accountability, and regular audits would be more effective measures. These elements could help prevent conflicts of interest, combat illegal activities, and create a healthier market environment for all stakeholders.

This debate raises an important question: is limiting ownership rights or implementing a comprehensive governance mechanism the best solution for South Korea’s cryptocurrency industry?

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