South Korea Caps Crypto Exchange Ownership At 20%

South Korean regulators have agreed to cap major shareholder stakes in crypto exchanges at 20%. The limit could force sweeping ownership restructurings across the country’s largest trading platforms.

According to the Korea Herald, the ruling Democratic Party’s digital asset task force reached the agreement Tuesday in a meeting with the Financial Services Commission (FSC), the country’s top financial regulator. While the base cap is set at 20%, the FSC will retain authority to permit holdings of up to 34% through enforcement decrees. Major exchanges such as Upbit and Bithumb would receive a three-year grace period after enactment, with smaller platforms granted an additional three years.

[단독] 업비트·빗썸 대주주 지분 제한 20%…3년 유예 뒤 시행 [크립토360]

디지털자산 거래소 대주주 지분 제한을 두고 정부와 국회에서 상한선을 20%로 합의했으며 유예기간을 법 시행 후 3년으로 설정해 업비트와 빗썸 등은 3년 뒤 20% 규정을 적

헤럴드경제유동현

Will Exchanges Be Forced Into Divestments?

If implemented, the rule would materially alter existing ownership structures. Bithumb Holdings controls more than 73% of Bithumb, and Binance holds over 67% of Gopax, both well above the proposed threshold. Significant divestments or dilution events may therefore be required to comply with the new framework.

The ownership cap is expected to be embedded within the Digital Asset Basic Act, South Korea’s comprehensive crypto bill covering stablecoin issuance and crypto exchange-traded funds. Originally targeted for rollout in 2025, the legislation has faced delays, though local outlet Hankyung reported Wednesday that the FSC is preparing to finalize its proposal.

The measure follows pushback from the Digital Asset Exchange Alliance (DAXA), which represents the country’s five largest exchanges. The group warned earlier this year that artificially altering shareholder structures could “significantly impede” industry growth and weaken private sector incentives. Could regulators view concentrated ownership as a systemic risk after recent operational missteps?

Local reports have linked heightened scrutiny to Bithumb’s accidental $43 billion bitcoin transfer last month, which raised concerns about governance and internal controls. The next catalyst will be the FSC’s formal legislative draft, which will clarify enforcement mechanics and determine whether Korea’s exchange operators must prepare for large-scale equity reshuffling.