•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Lawmakers and financial regulators in South Korea have agreed on a 20% ownership cap for key shareholders of crypto trading platforms, a move that has raised concerns among crypto investors as the country tightens control over its cryptocurrency industry.
Under the plan, all trading platforms would be subject to the cap, with a three-year adjustment window after the law is enacted. Smaller exchanges with market share below a set threshold would receive an additional three years to adapt.
The proposal would set a three-year deadline for Upbit and Bithumb, the two exchanges that together dominate around 90% of the market, to liquidate key shareholder holdings. Other platforms—Coinone, Korbit, and GOPAX—may be granted a transition window of up to six years.
The ruling party’s Digital Asset Task Force (TF) and the Financial Services Commission (FSC) also discussed potential exemptions that could allow ownership up to 34%. However, the higher limit would apply only to newly formed businesses, aligning with the Commercial Act’s shareholder veto provision.
Following the development, some crypto traders are preparing for potential fallout. Bitcoin, however, was reported to be holding steady above $72,870, up 7% over the past 24 hours.
While the ownership cap does not directly target Bitcoin trading, analysts cited in the article said major regulatory changes in a large crypto market like South Korea can still affect global sentiment.
The ownership cap plan is not yet final and must pass through South Korea’s National Assembly before it can be enacted. The FSC first proposed the cap in January, saying it would help mitigate risks tied to concentrated shareholding.
At the time, the Digital Asset Exchange Alliance (DAXA), representing South Korea’s five leading cryptocurrency platforms including Upbit and Bithumb, objected to the proposal. DAXA argued that restricting significant shareholdings would hinder the crypto industry’s growth and compromise its structural integrity.
The article notes that a National Assembly representative is expected to introduce the bill, though the sponsor has not been identified. Even after a formal proposal, the bill may face resistance: the opposition is resisting the measure, and some ruling party members also oppose shareholder restrictions.
“This is unprecedented worldwide and has low global consistency. If it is excessively introduced, it could have serious negative effects such as limited competition, slowed innovation, and strengthened barriers to entry.”
The ownership restriction is expected to be integrated into the Digital Asset Basic Act, the upcoming legislation covering South Korea’s crypto industry. The same legislation would also include regulations on stablecoin issuance and crypto exchange-traded funds.
Separately, South Korea’s National Assembly passed adjustments to the licensing system for virtual asset service providers earlier this year. Under the revised system, executives and major shareholders face more comprehensive background checks.
The updated rules allow authorities to consider involvement in drug trafficking, tax evasion, antitrust violations, and other serious financial crimes during licensing assessments.
The National Assembly is also discussing additional frameworks, including the Capital Market and Financial Investment Business Act and the Act on the Protection of Virtual Asset Users. Democratic Party lawmaker Kim Seung-won is pushing for changes to proposals that would require anyone advising on investments or promoting trading in virtual assets or financial products to declare their holdings and potential conflicts of interest.
The article also reports that South Korea’s finance minister committed to reforms to government digital asset management after failures exposed oversight and custody gaps. Authorities including police and tax officials have been found to have mishandled seized digital assets, including failing to retain private keys and revealing seed phrases.
Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol is advocating for system changes. Koo said: “Together with relevant agencies such as the Financial Services Commission and the Financial Supervisory Service, the government will inspect the current status and management practices of digital assets held and managed by government and public institutions through seizure and other enforcement measures.”
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
