South Korea Government and Ruling Party Agree on 20% Crypto Exchange Ownership Cap

Key Facts

The South Korean government and the ruling party have officially reached an agreement on a proposal to cap major shareholder stakes in cryptocurrency exchanges at 20%. This regulatory move is designed to strengthen corporate governance and prevent the concentration of power within the domestic digital asset market. Notably, the agreed proposal includes limited exemptions specifically tailored for new market operators to foster competition and ease market entry. Major trading platforms, such as Upbit and Bithumb, are expected to undergo significant ownership restructuring to comply with the new mandate. While the measure aims for long-term industry stability, analysts warn of potential short-term liquidity disruptions due to forced divestments. As South Korea remains a global hub for crypto trading, this formal agreement represents a critical structural shift for international investors.