South Korean regulators and legislators have agreed to impose a 20% ownership cap on major shareholders in cryptocurrency exchanges, a decision met with significant pushback from the industry. This cap is part of the forthcoming Digital Asset Basic Act, aimed at establishing comprehensive regulations for the crypto sector, which include control measures for governance and risk management. While exceptions will allow stakes up to 34% in specific cases defined by enforcement decrees, this new limit will require major exchanges like Bithumb and Upbit to restructure, as current ownership stakes far exceed the proposed cap. The Digital Asset Exchange Alliance has warned that such restrictions could hinder the growth of South Korea’s digital asset industry, raising concerns about the impacts on private company structures.
South Korean authorities establish 20% ownership cap for crypto exchanges
