South Korean regulators and the ruling Democratic Party’s digital asset task force have agreed to cap major shareholder stakes in cryptocurrency exchanges at 20%, with exceptions allowing stakes up to 34% under Financial Services Commission enforcement decrees, the Korea Herald reported.
The limit would take effect after legislation is passed, with a three-year grace period for major exchanges and an extra three years for smaller operators, the report said.
If enacted, the cap would likely force major exchanges to restructure ownership because Bithumb Holdings controls over 73% of Bithumb and Binance holds more than 67% of Gopax.
The Digital Asset Exchange Alliance, a self-regulatory organization representing South Korea’s five major exchanges including Upbit and Bithumb, warned the cap could “significantly impede” the industry’s growth.
Some local reports linked regulators’ concerns to Bithumb’s accidental US$43 billion bitcoin transfer last month, but did not confirm a direct connection to the ownership decision.
The cap is expected to be included in the Digital Asset Basic Act covering stablecoin issuance and cryptocurrency ETFs, and, according to Hankyung, the FSC is expected to finalize its legislative proposal soon.
Originally written by: Tech in Asia
Source: Tech in Asia
Published on: 5 March 2026
Link to original article: South Korea plans 20% cap on crypto exchange owners
