South Korea proposes a 20% ownership cap for cryptocurrency exchanges

The country’s regulators and lawmakers have agreed on a new limit for major shareholders of cryptocurrency exchanges

04.03.2026 - 12:45

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2 min

Key points:

Major shareholders of crypto exchanges will be allowed to own no more than 20% of a company.
In certain cases, the stake may reach up to 34% with regulatory approval.
Major exchanges will be given three years to adjust their ownership structure.

South Korean regulators and representatives of the ruling Democratic Party have agreed to introduce a limit on the shareholding of major shareholders in cryptocurrency exchanges. The maximum ownership stake will be set at 20%.

The proposal was discussed during a meeting between the digital asset task force and the Financial Services Commission, the country’s main financial regulator. At the same time, exceptions are предусмотрены: in certain cases, the regulator may allow stakes of up to 34% through secondary legislation.

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How the changes could affect crypto exchanges

If the law is adopted, the country’s largest cryptocurrency exchanges will have to restructure their ownership. For example, the holding company Bithumb Holdings currently controls more than 73% of the exchange Bithumb, while Binance owns more than 67% of the exchange Gopax. Both stakes significantly exceed the proposed limit.

For major platforms, the restriction will take effect three years after the law is adopted. Smaller crypto exchanges are expected to receive an additional three-year transition period to adapt.

The initiative is part of a broader reform of crypto industry regulation. The ownership cap is expected to be included in a future framework law on digital assets, which is also intended to regulate stablecoin issuance and the launch of cryptocurrency exchange-traded funds.

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