FSC to Limit Major Shareholder Stake in Korean Crypto Exchanges to 15-20%

December 30 — According to a KBS report, South Korea’s Financial Services Commission (FSC) has disclosed in a parliamentary report on the “Basic Digital Asset Law” that four domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, and Korbit) — which collectively serve 11 million users — have been designated as “core infrastructure” for virtual asset circulation. The FSC argues that a small number of founders and shareholders exert excessive control over the exchanges’ operations, and it is proposing to cap major shareholders’ ownership at 15% to 20%. Holding up to 30% of shares will only be permitted in special cases approved by the FSC or relevant mutual funds. If these rules are finalized, Dunamu — operator of Upbit, South Korea’s largest crypto platform — could be impacted, as the Dunamu chairman holds approximately 25% of Upbit’s shares. Bithumb also falls under the regulation’s scope, since Bithumb Holdings Limited owns a 73% stake in the exchange. South Korea’s crypto industry has criticized the move, claiming the government is attempting to impose excessive regulation that goes beyond market norms.