South Korea to cap crypto exchange shareholder stakes at 20%

The Democratic Party of Korea’s digital asset task force and the Financial Services Commission agreed to set the maximum shareholding limit for major shareholders in domestic crypto exchanges at 20% after discussions. Regulators may allow exceptions of up to 34% for new businesses through an enforcement decree, a threshold that references the Commercial Act’s 33.3% veto level.

Under the proposal, exchanges would have three years from the law’s enforcement to adjust their ownership structures, with smaller exchanges potentially receiving an additional three-year grace period. Larger platforms such as Upbit and Bithumb, which together control roughly 90% of the local market, would be required to reduce major shareholder stakes within the initial three-year period.

South Korea

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