The South Korean government and the ruling party are actively promoting a proposal aimed at reshaping the equity landscape of domestic cryptocurrency exchanges, proposing to set a 20% ownership cap for major investors on local trading platforms. This move will directly impact the control structures of market-leading platforms such as Upbit and Bithumb.
According to local media reports, the proposal originated from discussions between the Democratic Party's special task force on digital assets and the Financial Supervisory Commission (FSC). Regulators believe that as the importance of the crypto industry within the financial system continues to rise, an excessively concentrated ownership structure could pose systemic risks. Therefore, it is necessary to promote market diversification and stability by limiting ownership stakes.
Notably, the policy draft may include exceptions for emerging trading platforms, allowing ownership stakes of up to 34%. This figure is derived from the 33.3% veto threshold stipulated in South Korea's Commercial Act, aiming to balance the survival space for innovative enterprises.
This reform has sparked widespread discussion within the industry. While some regulators believe this move will help prevent monopolies and enhance transparency, others in the industry point out that such restrictions may stifle capital investment and technological innovation, potentially creating a rare high barrier to entry on a global scale. An industry insider commented that this policy is “unprecedented globally,” and its actual effects may be counterproductive, weakening South Korea's competitiveness in the international crypto market.
Currently, the proposal still needs to be submitted to the National Assembly for review, and its future direction remains uncertain.