 ▲ Bithumb |
Amid rising market tension after South Korean financial authorities and the ruling party agreed on a strong regulatory proposal capping major shareholders’ stakes in cryptocurrency exchanges at 20%, a compromise was introduced to defer implementation for three years. The move signals an inevitable and significant shift in the governance structures of Upbit and Bithumb, the key hubs for trading major digital assets such as Bitcoin (BTC) and XRP (Ripple).
According to cryptocurrency media outlet Bitcoinist on March 5 (local time), the Financial Services Commission (FSC) and the Democratic Party’s Digital Asset Task Force reached an agreement after months of friction to limit the ownership stake of major shareholders in crypto exchanges to 20%. The financial authorities had initially pushed for stricter regulations in the 15–20% range but appear to have stepped back in the face of strong opposition from the Digital Asset eXchange Alliance (DAXA), which includes Upbit and Bithumb.
The core of the agreement is the provision of a grace period to ease regulatory shock and prevent market disruption. Upbit and Bithumb, which together account for about 90% of the domestic market share, will be granted a three-year grace period, allowing them to gradually reduce their ownership stakes to meet the new standards.
Mid-sized and smaller exchanges with less than 20% market share—such as Coinone, Korbit, and Gopax—will be given an additional three years, ensuring a total preparation period of six years. In addition, the FSC has 마련ed an exception clause through enforcement ordinances allowing up to a 34% ownership stake exclusively for new business entrants. This reflects the 33.3% veto threshold at shareholder meetings under commercial law, ensuring defensive rights for new investors while restricting full managerial control.
The ownership cap measures are expected to be incorporated into the broader “Digital Asset Basic Act,” which encompasses wide-ranging policies including stablecoin regulations and the introduction of spot crypto exchange-traded funds (ETFs). The ruling party’s policy committee plans to finalize the detailed provisions of the regulation following a closed-door meeting with the FSC on the morning of the 5th.
However, it remains uncertain whether the bill will pass the National Assembly without obstacles. Strong opposition from rival parties, as well as concerns among some lawmakers about excessively strict limits on major shareholders’ stakes, have drawn attention to whether the revised proposal will be approved in its current form.
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