South Korea’s Monetary Providers Fee (FSC) has reportedly proposed limiting main shareholders of cryptocurrency exchanges to 15-20% possession stakes, a regulatory bombshell dropped on December 30-31 that’s now casting an extended shadow over the trade’s outlook for 2026.
The proposal would drive the founders and controlling shareholders of Korea’s high 5 exchanges to divest important parts of their holdings.
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A New Yr Clouded by Uncertainty
The timing of the announcement—simply days earlier than the brand new 12 months—has left trade members scrambling to evaluate the implications. A neighborhood media outlet first broke the story on December 30, which was subsequently coated by main monetary shops. What was anticipated to be a celebratory interval marking one other 12 months of progress in one of many world’s most energetic crypto markets has as a substitute develop into a interval of anxious hypothesis about the way forward for alternate possession buildings.
“The trade entered 2026 underneath a cloud of regulatory uncertainty,” one alternate government instructed reporters. “Offers that have been on the verge of closing at the moment are again on the drafting board.”
Sweeping Adjustments to Governance
Below the proposed Digital Asset Primary Act, the FSC goals to remodel crypto exchanges from founder-controlled non-public enterprises into quasi-public infrastructure, much like Various Buying and selling Programs (ATS) underneath Korea’s Capital Markets Act.
The affect can be speedy and far-reaching:
| Alternate | Largest Shareholder | Present Stake | Required Divestment |
|---|---|---|---|
| Upbit (Dunamu) | Founder (Tune Chi-hyung) | 25.52% | 5-10% |
| Bithumb | Bithumb Holdings | 73.56% | 53-58% |
| Coinone | Founder (Cha Myung-hun) | 53.44% | 33-38% |
| Korbit | NXC | 60.5% | 40-45% |
| GOPAX | Binance | 67.45% | 47-52% |
The proposal additionally indicators a shift from the present registration system to a full-licensing regime, with regulators conducting health critiques of main shareholders—a stage of scrutiny beforehand reserved for conventional monetary establishments.
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Mega-Offers in Limbo
Two of probably the most important company developments in Korea’s crypto sector now face main problems.
Naver’s deliberate merger with Dunamu, which might create a fintech big valued at roughly 20 trillion gained ($14 billion), is instantly affected. The present construction—the place Naver Pay would maintain 100% of Dunamu—is essentially incompatible with the proposed possession caps.
Equally, Mirae Asset’s acquisition of Korbit, for which a memorandum of understanding was not too long ago signed with main shareholders NXC and SK Planet, faces an unsure path ahead. Business observers word that investing over 100 billion gained with out securing administration management undermines the strategic rationale for the deal.
Stress-free the Wall Between Finance and Crypto
One important side of the proposal includes easing Korea’s strict separation between conventional finance and digital asset companies.
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Since late 2017, when the federal government imposed sweeping cryptocurrency laws amid a speculative frenzy, authorities have maintained the unwritten rule. It bars banks, insurers, and different monetary establishments from investing in or partnering with crypto companies—a coverage designed to insulate the standard monetary system from the volatility and dangers of digital belongings. Whereas by no means codified into regulation, this precept has successfully stored established monetary gamers on the sidelines of Korea’s booming crypto market.
The FSC now seems to acknowledge that reaching possession dispersion whereas sustaining market stability requires participation from established monetary establishments. This might open the door for securities companies and asset managers to take stakes in exchanges, doubtlessly accelerating institutional adoption and the event of safety token choices (STO) and real-world asset (RWA) tokenization.
Business Pushback
Alternate operators have responded with sharp criticism. Key issues embrace the potential disappearance of accountable controlling shareholders, which might create ambiguity about accountability when issues come up. Some argue that behavioral laws and voting rights restrictions can be extra applicable than pressured dispersion of possession.
There are additionally fears that domestic-only restrictions might inadvertently profit overseas opponents, with abroad platforms gaining market share whereas Korean exchanges wrestle to restructure.
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“The federal government is making an attempt regulation that goes far past market tips,” one trade consultant mentioned. “Laws supposed to advertise the digital asset trade and shield shoppers might find yourself infringing on property rights and destabilizing company governance.”
World Implications
Korea’s proposal comes amid a broader regional push to formalize the governance of crypto exchanges. Indonesia launched the world’s first state-backed cryptocurrency bourse in 2023, with laws limiting cross-ownership between exchanges to twenty%. Vietnam launched a licensing regime in September 2025 requiring a minimal capital of $378 million and capping overseas possession at 49%.
Nevertheless, Korea’s method goes additional by concentrating on current market leaders somewhat than simply setting guidelines for brand spanking new entrants. Forcing founders of established exchanges to divest important stakes is unprecedented amongst main crypto markets. With 11 million registered customers, Korea’s experiment in retroactive possession dispersion might be intently watched by regulators elsewhere grappling with easy methods to impose public-utility-style governance on non-public platforms which have already achieved dominance.
What Comes Subsequent
The FSC has emphasised that the proposal shouldn’t be closing, with officers stating that particulars together with particular possession thresholds stay underneath dialogue. Authorized consultants recommend a transition interval of 5-10 years might be granted to permit gradual compliance.
For now, the Korean crypto trade enters 2026 going through the prospect of its most important structural transformation for the reason that first exchanges launched 13 years in the past. The approaching months will decide whether or not this reshaping strengthens the market’s foundations or disrupts the momentum that made Korea a worldwide crypto powerhouse.