South Korea’s Shocking New Crypto Rule: Major Shareholders Limited to 20%!

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South Korea Caps Crypto Exchange Ownership at 20% for Major Shareholders

South Korea is restricting major shareholders of cryptocurrency exchanges to a maximum of 20% ownership, though it may allow up to 34% in certain cases. Major exchanges will have some time to adjust and meet the new rules.

South Korea will cap ownership stakes in cryptocurrency exchanges at 20% to strengthen how they’re managed. The new rule applies to all exchanges and was agreed upon by financial regulators and lawmakers, despite some worries from the crypto industry. People starting new exchange businesses may be allowed to own up to 34%.

Regulators and Lawmakers Agree on Ownership Cap

The Financial Services Commission and the Democratic party discussed rules limiting how much ownership major shareholders can have. A 20% limit applies to all stock exchanges. Exchanges will have time to adjust their ownership structures, and the law gives them three years to meet the new requirements. Smaller exchanges may be granted an extra three years to comply.

🚨 SOUTH KOREA SETS 20% OWNERSHIP CAP FOR CRYPTO EXCHANGES

South Korean regulators have decided to limit major shareholders in cryptocurrency exchanges to owning no more than 20% of the company.

This aims to stop too much control in the hands of a few and improve governance of big trading…

— Coin Bureau (@coinbureau)

The 34% rule only applies to people starting new businesses. This percentage is similar to standard business law, which usually allows anyone holding a third of the shares to block decisions in meetings. Current major shareholders won’t get this increased level of control. This is a compromise: it allows new businesses some flexibility while still maintaining a level of regulatory control.

Major Exchanges Face Ownership Adjustments Within Grace Periods

As an analyst, I’m tracking significant changes coming to the South Korean crypto exchange landscape. Major players like Upbit and Bithumb are facing pressure to diversify ownership – they’ll need to sell off majority stakes within three years. Currently, Upbit’s largest shareholder controls about 25.52% of the company, and Bithumb Holdings owns a substantial 73.56%. Smaller exchanges – Coinone, Corbit, and Gopax, for example – have a bit more time, up to six years, to meet the new regulations. The goal here is to reduce concentrated ownership and increase transparency in the market.

Related Reading: Chun Wang’s $67M ETH Moves Spark Accumulation Talk

The new rule also aims to ensure minority founders don’t have excessive control over exchanges, which are vital to the financial system. Strong governance and accountability are necessary to maintain market stability. A dedicated task force helped reach agreements with the Finance Committee, including allowing time for adjustments and clear exemptions for new ownership.

Gopax and Other Exchanges to Follow 20% Cap Under New Law

People in the cryptocurrency industry are worried that new rules could stifle competition and innovation. Several exchanges already have major shareholders controlling over 20% of the company – for instance, Coinone has 53.44% and Gopax has 67.45%. While some believe strict limits on ownership could make the market less adaptable, lawmakers are trying to find a way to protect users while still allowing the digital asset industry to grow.

From my analysis, the new regulation is likely to be approved, even with some internal party opposition. Key meetings with the Finance Committee secured the 20% ownership cap. Once it’s in effect, all crypto exchanges will have to stay within that limit, or utilize officially sanctioned exceptions. I believe this will significantly improve how the South Korean crypto market is governed, making it more transparent and protecting investors.

South Korea’s updated rules for shareholders are designed to build a more equitable and stable market. These changes give stock exchanges firm deadlines and reasons to address who owns companies. The new policy demonstrates how to manage the power of major shareholders while still encouraging economic growth.

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2026-03-04 20:07