FSC to hold last-minute talks today with five major exchanges on the “Digital Asset Framework Act”… spotlight on the direction of equity-ownership rules

The Financial Services Commission (FSC) will today hold last-minute consultations with major cryptocurrency exchanges regarding the Digital Asset Framework Act (second phase of legislation).

According to the financial industry on the 23rd, the FSC will host a closed-door meeting this morning at the Government Complex Seoul, chaired by Vice Chairman Kwon Dae-young, with representatives from the five major exchanges: Dunamu (Upbit), Bithumb, Coinone, Korbit and Streami (Gopax). The FSC plans to hear industry views on the bill—including a proposal to set a cap on controlling shareholders’ stakes at around 15–20%—and to explain the rationale behind the制度.

The discussions come against the backdrop of a recent crypto mispayment incident at Bithumb. Immediately after the accident, authorities launched a joint inspection involving relevant agencies and are checking overall internal controls and IT management systems. The FSC has maintained that the incident underscores the need to overhaul internal-control standards across all exchanges.

Items reportedly under review for inclusion in the framework act include: △forming bank-led consortia via 50%+1 share ownership by banks △limiting controlling shareholders’ stakes in exchanges to 15–20% △mandating internal-control standards comparable to those for financial institutions △regular audits of crypto holdings through external bodies △a strict-liability provision—regardless of fault—to protect users in the event of IT accidents. In particular, some say the equity-ownership rules could be pushed through largely as drafted, citing exchanges’ role as quasi-public infrastructure and the need to prevent conflicts of interest.

However, with clear differences between the ruling and opposition parties, legislative friction is expected. The ruling party argues that regulatory overhaul is unavoidable as exchanges are brought into the formal regulatory perimeter, while the opposition warns that excessive ownership limits could dampen the market. As the Digital Asset Framework Act includes a shift from the current three-year registration system to a licensing regime, the level of equity-ownership restrictions is expected to emerge as a key issue in upcoming National Assembly deliberations.