BlockBeats report: On March 4, according to Yonhap News, the South Korean government and the ruling party reached an agreement on limiting major shareholder ownership in digital asset trading platforms, setting the cap at 20%. This standard will apply uniformly to all trading platforms, with a grace period of three years after the law takes effect. However, for trading platforms that have not met specific market share criteria, the grace period will be extended by an additional three years.
The Democratic Party of Korea’s Digital Assets Task Force (TF) met the previous day with the Financial Committee to discuss key issues surrounding digital assets—specifically, the ownership cap for major shareholders of trading platforms. It was reported that the TF and the Financial Committee reached a consensus during the meeting: the ownership cap for major shareholders would be set at 20%, but new enterprises could be exempted up to 34% under exceptions determined by the Financial Committee via implementing regulations. This 34% threshold applies exclusively to new market entrants and is based on the shareholder veto threshold established in the Commercial Code (33.3%).
The legal grace period for implementing major shareholder ownership restrictions is three years. However, cryptocurrency exchanges that do not meet specific criteria (estimated market share of 20%) may receive an additional three-year extension. Upbit and Bithumb, which together hold approximately 90% of the market share, must complete adjustments to their major shareholder ownership within three years of the law’s implementation. In contrast, exchanges with relatively lower market shares, such as Coinone, Korbit, and Gopax, are expected to be eligible for a maximum grace period of six years.