New ownership restrictions for centralized cryptocurrency exchanges are on the agenda in South Korea. Lawmakers are discussing a regulation that would require large shareholders to reduce their stakes in platforms. While these developments create uncertainty in the crypto industry in the country, it is predicted that they may lead to radical changes in shareholder structures.
Ownership Limit Proposal on the Agenda
The proposal in question is being evaluated within the scope of the second phase of the Digital Asset Basic Law, which is expected to be submitted to the Parliament soon. The bill aims to limit the maximum share that individual shareholders can have in platforms such as South Korea-based major crypto exchanges Upbit, Bithumb, Coinone, Korbit and Gopax to 15 percent. If this regulation comes into force, partners who currently hold high shares will be required to reduce their shares by between 5 and 58 percent.
Different Approaches of the Government and the Opposition
The ruling Democratic Party argues that centralized crypto platforms should be treated similarly to Alternative Trading Systems in the country’s Capital Markets Law. In this context, it is thought that it would be appropriate to apply the maximum 15 percent partnership share model determined for large shareholders to crypto exchanges.
However, the main opposition argues that the proposal could lead to forced share sales, damaging investor confidence and negatively affecting free market dynamics. Opponents point out that traditional securities regulations ignore the unique nature of digital asset markets.
Concerns and Acquisition Attempts in the Sector
It is known that recently large South Korean companies such as Naver Financial and Mirae Asset have become interested in acquisitions or partnership initiatives on stock exchanges. It is stated that new ownership limits may slow down such merger and acquisition activities. The regulatory process is of great importance, especially considering the increasing interest of institutional investors in crypto infrastructure.
Reactions from the industry state that such an intervention could bring about the most significant change in ownership structure ever in the country’s crypto market. Platform officials and industry experts emphasize the risk of creating a disadvantage in international competition.
South Korea is also increasing controls to prevent manipulation and irregularities in the crypto market. Recently, it has been announced that new investigations have been launched to prevent irregular movements on digital asset platforms.
The research unit of the FourPillers company points out that these regulations on ownership may also have global repercussions.
While public disagreements on the proposal continue, it is wondered how the final law will affect sector balances and shape potential investor behavior.
