South Korea Weighs 15% to 20% Cap on Crypto Exchange Shareholders

South Korea is weighing limits on major shareholders at crypto exchanges as officials shape legislation that would move platforms from a reporting framework to a licensing system. The ceiling under consideration is 15% to 20%. Existing platforms could receive one to two years to sell shares above the threshold. Another option would restrict shareholders’ voting rights while leaving their ownership stakes untouched, amid concerns over property rights. The proposed law could impose no-fault compensation liability on exchanges affected by hacks or system failures. Failure to meet requirements to hold users’ crypto assets could become grounds for suspending operations. For stablecoins, a bank-centered consortium is expected, and the Bank of Korea (BOK) has said banks should lead issuance.

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