Forced Sale from 25% to 20%: 5 Shocks the Digital Asset Act's 20% Major Shareholder Cap Agreement Poses for Korea's Crypto Market
Financial regulators and the Democratic Party have agreed in principle to include a 20% major shareholder stake cap with a 3-year grace period in the Digital Asset Basic Act. All major shareholders of Upbit, Bithumb, Coinone, and Gopax will be required to divest significant portions of their holdings, and the National Assembly Research Service has warned of potential unconstitutionality.
Why does this matter now? The founder of Upbit (Dunamu), which holds a 69% share of Korea's virtual asset market, may be required to sell down a 25.52% stake to below 20% within three years. If the world's only legal cap on major shareholder stakes in crypto exchanges becomes reality, the ownership structure of Korea's cryptocurrency market will be shaken to its core.
TL;DR
- The Financial Services Commission and the Democratic Party's Digital Asset Task Force have agreed in principle on a 20% major shareholder stake cap with a 3-year grace period
- Upbit (Dunamu) Song Chi-hyung 25.52%, Bithumb Holdings 73.56%, Coinone 53.44%, Gopax 67.45% → all face mandatory stake divestiture
- National Assembly Research Service: warns of unconstitutionality as a violation of property rights and freedom of business activity
- A regulation with no precedent anywhere in the world — controversy over discriminatory treatment vs. global operators
- Party-government consultation postponed to March 5; Digital Asset Basic Act targeted for enactment this year
1. The Facts: What Has Been Decided
The Financial Services Commission and the Democratic Party's Digital Asset Task Force (TF) are reported to have broadly agreed in their consultations on the Digital Asset Basic Act (Phase 2 Virtual Asset Bill) on a plan to set a 20% cap on major shareholder stakes in virtual asset exchanges, with exceptions under enforcement decrees allowing up to 34%.
The grace period for the stake restriction is 3 years after the law takes effect, while smaller exchanges with lower market share such as Coinone, Korbit, and Gopax receive an additional 3-year grace period, giving them up to 6 years in total.
The rationale put forward by financial authorities is straightforward: virtual asset exchanges are quasi-financial infrastructure through which the assets of millions of investors flow, and therefore ownership structures must be dispersed in the same way as alternative trading systems (ATS).
2. Why It's Trending Now
In the immediate aftermath of peak stock market chaos — when the KOSPI and KOSDAQ recorded their largest-ever single-day drops on March 4 due to the fallout from the Iran War — the FSC held its 5th Virtual Asset Committee and released the government's draft review of the Digital Asset Basic Act, drawing widespread attention. Although party-government consultations were postponed to March 5 as Iran War shock dispersed policy energy, industry and media attention became even more concentrated.
The Dong-A Ilbo exclusively reported (3/4) that the National Assembly Research Service had officially raised concerns about unconstitutionality, and the Seoul Economic Daily, Bloter, EToday, and Asia Economy followed with a wave of successive reports.
3. Context & Background: Who Is Involved
| Exchange | Major Shareholder | Current Stake | Divestiture Required |
|---|---|---|---|
| Upbit (Dunamu) | Chairman Song Chi-hyung | 25.52% | ✅ Within 3 years |
| Bithumb | Bithumb Holdings | 73.56% | ✅ Within 3 years |
| Coinone | — | 53.44% | ✅ Up to 6 years |
| Gopax (Binance) | — | 67.45% | ✅ Up to 6 years |
This also becomes a direct variable in the M&A strategies being pursued by Naver and Mirae Asset for virtual asset exchanges. If an acquirer can only maintain a stake of 20% or less after acquisition, securing management control becomes practically impossible.
4. Outlook: How Far Will This Go?
Three scenarios are competing.
- Original bill passes: Digital Asset Basic Act enacted this year, full restructuring of major exchange ownership — public stake sales or distributed trust structures introduced
- Passed in softened form reflecting unconstitutionality concerns: Cap raised to 34%, or scope of 'public interest exceptions' expanded
- Legislative delay: Unconstitutionality risks + industry backlash + Iran War shock push the National Assembly schedule back → uncertain whether it will be processed within 2026
This is a short-term (1–3 month) issue, but if the bill passes, structural changes spanning several years will be unavoidable.
5. Checklist: 5 Core Issues
Reference Links
- Dong-A Ilbo exclusive: Research Service finds unconstitutionality concerns (2026.03.04)
- Seoul Economic Daily: Crypto exchange major shareholder stake cap of 20% taking shape…3-year grace period (2026.03.05)
- Bloter: 20% stake cap taking shape…unconstitutionality controversy a variable (2026.03.06)
- EToday: Crypto exchange stake cap emerges…unconstitutionality controversy and governance restructuring as variables (2026.03.05)
- Asia Economy: Major shareholder stake cap taking shape…5 major crypto exchanges on alert (2026.03.05)
- InvestChosun: FSC pursues crypto exchange major shareholder stake cap…Naver and Mirae Asset M&A shaken (2026.01.06)
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