TechFlow News, March 4: According to The Block, South Korean regulators and lawmakers have reached consensus on capping the shareholding ratio of major shareholders at cryptocurrency exchanges at 20%, despite strong industry opposition.
On Tuesday, South Korea’s ruling Democratic Party’s Digital Asset Task Force held a meeting with the country’s top financial regulator, the Financial Services Commission (FSC), agreeing to set the cap on major shareholders’ equity stakes at 20%, while also permitting up to 34% ownership in exceptional circumstances defined by enforcement decrees to be issued by the FSC.
The new restriction will take effect three years after legislation is enacted for major exchanges such as Upbit and Bithumb, while smaller exchanges will receive an additional three-year transition period. This move will force most major South Korean cryptocurrency exchanges to undergo significant restructuring—for instance, Bithumb Holdings currently controls over 73% of Bithumb’s shares, and Binance holds over 67% of Gopax’s shares.
According to reports, this ownership cap is expected to be incorporated into South Korea’s forthcoming Digital Asset Basic Act, which will also address key issues including stablecoin issuance and cryptocurrency ETFs.
