Well, well, well! It seems South Korean authorities and the ruling party have finally come to an agreement on a “who’s who” of crypto ownership-setting a 20% ceiling for major shareholders in those shiny virtual asset exchanges, with a three-year time-out for everyone to catch their breath. Seriously, who knew negotiating could take longer than downloading a new app?
From A Strict Proposal To Compromise
After what seemed like a reality show filled with friction, the Financial Services Commission (FSC) and the Democratic Party’s digital asset task force finally found common ground-like two lost socks in the dryer! The Korea Herald reports that they’ve settled on this 20% cap for major shareholders, after initially threatening with a stricter 15-20% range that had the industry throwing more tantrums than a toddler in a toy store.
Yep, this 20% cap is the grand prize of a long-running saga where regulators tried to rein in founder control over the biggest crypto exchanges. But wait-hold your applause! The Digital Asset Exchange Alliance (DAXA), which sounds like a superhero team, led the charge against the initial proposal. Because clearly, who doesn’t love a good standoff between regulators and exchange moguls?
The Deal Terms
So, here’s the deal: a 20% cap with an oh-so-generous grace period that looks suspiciously like a way to keep the peace without anyone losing their cool. The FSC and the ruling party decided on a three-year grace period, giving titans like Upbit and Bithumb-who collectively hold about 90% of the market-the breathing room they need to trim their stakes. Talk about a game of financial limbo!
And for those smaller fry exchanges, like Coinone and Korbit? They can relax even more with an extra three years, totaling six glorious years to get their act together before the big boss comes knocking.
Exceptions
But wait, there’s more! The FSC threw a little bone to new businesses, allowing them to stake up to 34%. Existing exchanges? Sorry, folks! You’re still stuck at 20%. It’s like being told you can only have dessert if you’re a new kid on the block. According to The Korea Herald, this rule mirrors the Commercial Act’s 33.3% veto line, which essentially means new investors can flex their muscles without fully taking over. It’s like giving someone the keys to the candy store but telling them they can only lick the wrappers!
The Final Details On The Digital Asset Basic Act
Now, the ruling party’s policy committee is gearing up to hammer out the final details after a closed-door meeting with the FSC-because nothing says transparency like a closed-door meeting, right? The ownership cap will be shoehorned into the broader Digital Assets Basic Act, a bill that promises everything from stablecoin rules to crypto exchange-traded funds. It’s like a buffet of crypto regulations!
But hold your horses! The bill’s passage is not a sure thing. The Korea Herald tells us that the opposition party is pushing back harder than a cat in a bathtub, and some lawmakers are having second thoughts about those strict limits on major shareholder stakes. Will it clear the National Assembly? Stay tuned for the next episode of “Crypto Drama!”
Cover image from ChatGPT, BTCUSD chart from Tradingview
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2026-03-05 07:11