South Korea Mulls 20% Stake Cap for Crypto Exchange Shareholders

The Financial Services Commission in South Korea is pushing for a plan to cap stakes held by major shareholders in cryptocurrency exchanges at 20%, despite conducting no related legal review or advisory work over the past five years.

The commission is reviewing a provision for the government's draft Digital Asset Basic Act, which would limit stake ownership by major shareholders of virtual asset businesses to 20% in principle. An exception allowing holdings of up to 34% for companies that meet certain requirements is also being discussed.

The National Assembly Research Service has previously warned that requiring existing major shareholders to dispose of their holdings or accept limits on voting rights could raise legal issues involving constitutional property rights, freedom of occupation and business activity, and the principle barring retroactive legislation.