South Korea’s ruling Democratic Party and the Financial Services Commission have agreed to limit major shareholder stakes in domestic crypto exchanges to 20%. The decision came after a meeting between the party’s digital asset task force and the FSC on Tuesday. A report from the Korea Herald first disclosed the agreement.

Under the proposal, the FSC would allow exceptions of up to 34% for new businesses through enforcement decrees. That threshold is tied to the Commercial Act’s 33.3% veto threshold in general shareholders’ meetings. The exception is intended to support early-stage operators entering the market.