South Korea's ruling party opposes FSC's proposed stake limit for crypto exchanges

South Korea's ruling People Power Party (PPP) is opposing a legislative push by the Financial Services Commission (FSC) to impose a stake limit on major shareholders of digital asset exchanges, Edaily reported. Rep. Kim Sang-hoon, a member of the National Assembly's Political Affairs Committee and chairman of the PPP's special committee on stock and digital asset value-up, stated that such a regulation would blur lines of management responsibility and could lead to side effects like capital flight. He argued that if the government intended to implement ownership rules, it should have done so when the digital asset market was first forming over a decade ago. Kim criticized the FSC for pursuing a regulation that was not in its original proposal, suggesting it is inappropriate to do so now under the influence of what he described as unseen forces from above.