- South Korea proposes shareholding limits on crypto exchanges.
- FSC proposes 15-20% ownership cap.
- Potential impact on corporate investments and governance.
The decision aims to transform exchanges into public infrastructure, affecting major business deals and sparking regulatory concerns, with the market watching for potential impacts on corporate governance.
Main Content
South Korea’s Regulatory Proposal
South Korea’s Financial Services Commission has proposed new regulations to cap major shareholders’ ownership in cryptocurrency exchanges. The proposal, announced at the end of December 2025, aims to limit ownership to 15-20% under the Digital Asset Basic Act framework.
Impact on Major Crypto Exchanges
Main crypto exchanges affected include Upbit, Bithumb, Coinone, GOPAX, and Korbit. Founders and major stakeholders face mandatory divestments to comply. The proposal aims to transform exchanges into quasi-public infrastructures requiring fitness reviews for shareholders.
“The industry entered 2026 under a cloud of regulatory uncertainty. Deals that were on the verge of closing are now back on the drawing board.” — Unnamed Exchange Executive
Potential Market and Governance Impacts
The new ownership limits could cause significant upheaval across the cryptocurrency market, with exchanges needing to restructure their ownership. Industry players voice concerns about potential impacts on corporate governance and market stability. Analysts foresee the regulation altering the landscape of crypto investments, potentially encouraging institutional investments from securities firms and asset managers. Concerns include infringements on property rights and challenges to existing corporate structures.
Global Regulatory Context
The proposal arrives amidst a backdrop of evolving regulatory landscapes globally, reflecting historical precedents set by countries like Indonesia and Vietnam. The industry anticipates strict compliance timelines and gradual adaptation to the proposed changes. The regulatory timeline envisions additional changes, such as easing corporate crypto investment restrictions, unlocking the potential for significant institutional capital flow into cryptocurrencies. Market stabilization and compliance paths remain central to ongoing industry and regulatory dialogues.
| Disclaimer: The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions. |