Democratic Party formalizes push to disperse crypto exchange governance… “Move quickly on the Framework Act on Digital Assets”

The Democratic Party of Korea has formally put forward an institutional overhaul aimed at dispersing the governance structure of cryptocurrency exchanges.

On the 10th, Han Jeong-ae, the party’s chief policymaker, said at a floor leaders’ meeting, “We must move quickly on the Framework Act on Digital Assets to disperse exchanges’ governance and create a digital-asset trading environment the public can trust.” This marks the first time the party’s leadership has publicly referenced dispersing exchange governance.

The party is said to be discussing the introduction of the Framework Act on Digital Assets—after consultations with financial regulators—based on proposals prepared by its Digital Assets Task Force (TF) under the Policy Committee. The aim is to address, through institutional measures, the problem of excessive concentration of control at exchanges.

Financial authorities are also reviewing measures to limit the influence of controlling shareholders at exchanges. The Financial Services Commission is discussing a plan to cap controlling shareholders’ stakes at 15–20%, in line with the level applied to alternative trading systems (ATS).

Han explained, “We will shore up loopholes in the current system by imposing obligations to establish internal control standards, conducting regular inspections of digital-asset holdings by external institutions, stipulating strict liability for crypto-asset service providers in the event of IT incidents, and strengthening fit-and-proper reviews for controlling shareholders.”