South Korea's ruling Democratic Party has reached an agreement with the Financial Supervisory Service on a key proposal to limit the maximum shareholding of a single shareholder in cryptocurrency exchanges to 34% in the upcoming Digital Asset Basic Act. According to a report by ZDNet Korea, the bill will be submitted to the National Assembly for deliberation after final approval from the party-government consultation mechanism. This restriction will apply to all trading platforms operating in South Korea, both new and old, aiming to improve industry transparency and stability from a structural level.
This move marks a new stage in South Korea's digital asset regulation. Since the crypto boom of 2017-2018, South Korea has implemented real-name trading and anti-money laundering mechanisms. The setting of a shareholder ownership cap represents the first in-depth intervention in corporate governance structure. The 34% figure was not set arbitrarily – in South Korean company law, this proportion is precisely the "blocking minority stake" that can veto major resolutions requiring a two-thirds majority, intended to prevent individual capital parties from manipulating exchange decisions.
Major global markets take different approaches to such issues. Japan's Financial Services Agency focuses on requiring exchanges to establish sound internal control systems without setting a clear shareholding threshold. The EU's MiCA law focuses on consumer rights and market integrity without addressing ownership concentration. In contrast, South Korea's regulatory approach is more targeted, directly addressing the risk of high concentration in the local market.
Market analysis points out that South Korea's cryptocurrency trading volume has long been among the highest in the world, with per capita participation far exceeding most Western countries. Retail investors dominate, making the demand for fairness and security more urgent. In recent years, multiple exchange collapses worldwide have highlighted the systemic risks that can be triggered by excessive concentration of control. The Financial Supervisory Service has previously launched investigations into abnormal trading on several platforms. This reform is a key step in responding to regulatory pressure and public concerns.
According to industry data, although South Korea has a population of less than 53 million, its average daily cryptocurrency trading volume consistently ranks among the top three in the world, making the upgrade of regulatory efforts imperative.