South Korea Moves to Cap Major Shareholders' Crypto Exchange Stakes at 20%

South Korea's cryptocurrency trading market is highly concentrated, with Upbit and Bithumb together accounting for about 90% of the market. The ownership and governance of trading platforms have consequently become a regulatory focus. The South Korean government and ruling party are considering limits on major shareholders' stakes to curb the risks of excessive control, strengthen competition and improve investor protection.

The latest consensus would cap major shareholders' stakes in domestic cryptocurrency exchanges at 20% and require large platforms including Upbit and Bithumb to adjust their ownership structures within three years of the new rules taking effect. Reports did not disclose the proposal's exact date, the legislation's effective date or any amounts involved. Formal legislative language and an implementation timetable have yet to be released.