South Korea Introduces Shareholding Limits for Crypto Exchanges

The South Korean government is planning to introduce regulations that would limit the shareholdings of majority shareholders in cryptocurrency exchanges to 20%. This move is aimed at promoting fair competition and preventing any single entity from dominating the market.

According to local media, the authorities have agreed on a plan to reduce the stakes of majority shareholders in cryptocurrency exchanges. Exceptions may be made for new market entrants, allowing them to hold up to 34% of shares. This threshold aligns with the Commercial Code, which stipulates that 33.3% of votes are sufficient to block decisions at a general shareholders' meeting.

Exchanges will have three years to adjust their ownership structures to meet the new requirements. Upbit and Bithumb, which control about 90% of the South Korean market, will be affected by this regulation. Smaller platforms will be granted an additional three-year grace period.