South Korea Plans 20% Ownership Cap for Crypto Exchange

TLDR

Table of Contents

Korea’s FSC plans 15–20% ownership cap for major crypto exchanges.
Naver-Dunamu and Mirae-Korbit deals face delays under new cap rule.
Founders of Upbit and Bithumb may need to divest major stakes.
FSC may allow financial firms to buy exchange shares for stability.

South Korea entered 2026 with growing unease after its Financial Services Commission (FSC) proposed limiting major crypto exchange ownership to between 15% and 20%. The move could disrupt billion-dollar mergers, including the planned Naver-Dunamu deal and Mirae Asset’s acquisition of Korbit.

New Rule Could Reshape Exchange Ownership

The FSC’s proposal, announced between December 30 and 31, aims to transform Korea’s crypto exchanges into public-style financial infrastructure. It would force founders and top shareholders to divest large stakes.

Under the plan, Upbit’s founder Song Chi-hyung, who holds 25.52%, would need to reduce his stake by 5–10%. Bithumb’s holding company, which controls 73.56%, would have to cut more than 50%. Binance’s 67.45% ownership of GOPAX also falls above the proposed limit.

South Korea is proposing a cap on crypto exchange ownership — major shareholders limited to 15–20%.
If this passes, founders at Upbit, Bithumb, and others may be forced to sell stakes. Big governance shift, but also raises overregulation concerns. pic.twitter.com/cmBQcabVhL
— AVOLA (@Avolaofficial) December 30, 2025

The regulation forms part of the forthcoming Digital Asset Basic Act, which introduces full licensing for exchanges and subject shareholders to fitness reviews similar to those for banks and brokerages.

Major Mergers and Acquisitions at Risk

The proposal immediately cast doubt over two high-profile corporate deals. Naver’s plan to merge with Dunamu, valued at about 20 trillion won ($14 billion), could become impossible since Naver Pay intended to hold 100% of Dunamu.

Similarly, Mirae Asset’s expected 100 billion won investment to acquire Korbit is now uncertain. “Deals that were on the verge of closing are now back on the drawing board,” one exchange executive told local reporters.

Industry analysts warned that the ownership cap could deter future investment by removing incentives for management control.

FSC Seeks Broader Participation from Financial Institutions

While limiting founder control, the FSC intends to relax Korea’s long-standing wall between traditional finance and crypto. Since 2017, banks and insurers were barred from investing in or partnering with crypto firms.

The new rule would allow securities and asset management firms to acquire stakes in exchanges. This change could support market stability and expand participation in tokenized assets such as security token offerings (STO) and real-world asset (RWA) projects.

Regulators reportedly view diversified ownership as a way to prevent excessive concentration of power among early crypto entrepreneurs while promoting compliance and institutional oversight.

Industry Opposition and Global Context

Exchange operators have criticized the plan, warning that removing controlling shareholders could create accountability gaps. “The government is attempting regulation that goes far beyond market guidelines,” one industry representative said, adding that property rights and corporate governance could be affected.

Others expressed concern that local restrictions might strengthen foreign competitors such as Binance or OKX, which are not subject to Korean ownership rules.

Across Asia, similar efforts are emerging. Indonesia capped cross-ownership in crypto exchanges at 20% in 2023, and Vietnam introduced a licensing system with capital and ownership limits in 2025. However, Korea’s retroactive approach—targeting existing market leaders—is unprecedented.