The FSC plans to introduce a major change in the second phase of the Digital Asset Basic Act: capping any single entity’s stake in cryptocurrency exchanges to curb concent ration risks. The bill is expected to reach parliament in early 2026. Although the rule sets a maximum ownership threshold, it keeps an exception allowing up to 34% ownership in so-called “special cases,” a vague clause critics warn could undermine the policy’s effectiveness.
If passed, founders of several leading Korean exchanges would have to drastically cut their stakes. Dunamu chairman Song Chi-hyun currently holds about 25% to 28% of Upbit and would need to reduce by 5 to 10 percentage points; Bithumb’s holding company owns as much as 73%, meaning it must divest more than half its stake; Coinone chairman Cha Min-hoon, with 53% to 54% ownership, faces equally sharp adjustments.
Compliance timelines will vary by platform size: large operators such as Upbit and Bithumb must complete the adjustments within three years of the law taking effect, while mid- to smaller-size exchanges like Coinone, Korbit and GOPAX may receive up to a six-year transition period, including a possible three-year extension.
The move stems from Korea’s highly concentrated crypto market. Upbit and Bithumb together control 96% of domestic trading volume and serve over 11 million adult users, prompting regulators to label them “core financial infrastructure.” In 2025, Upbit logged KRW 411 trillion (roughly USD 286 billion) in a single quarter, while Bithumb reported KRW 128 trillion. Such immense scale coupled with tight individual control has regulators worried about market manipulation, insider trading and token listing conflicts of interest.
The industry reaction was swift and united. DAXA, representing the five major exchanges, explicitly opposed the proposal, calling forced divestment an infringement on constitutional property rights and refusing to negotiate on ownership caps. The Korea Startup Forum warned the move could signal a hostile environment to the broader crypto ecosystem and drive some companies offshore. A handful of opposition lawmakers and Democratic Party advisors also questioned whether rigid ownership limits are the most effective and proportionate way to address concentration.