South Korea's Financial Services Commission has proposed a new regulation to limit the shareholding of major shareholders in the country's leading cryptocurrency exchanges to between 15% and 20%. This proposal, part of the "Basic Act on Digital Assets" submitted to the National Assembly, targets the four major exchanges: Upbit, Bithumb, Coinone, and Korbit. The measure aims to prevent a small group of founders and shareholders from exerting excessive control over exchange operations.
If enacted, this regulation could compel significant equity adjustments, such as Upbit's parent company chairman, Song Chi-hyung, potentially needing to divest around 10% of his shares. The proposed changes have sparked industry concerns over increased government intervention in the crypto sector.
South Korea Proposes Shareholding Limits for Crypto Exchange Owners
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