South Korea to Introduce Digital Asset Law in Early September With 20% Cap on Crypto Exchange Major Shareholders - bloomingbit

South Korea is preparing to introduce a comprehensive digital asset law in early September, with one notable provision: a 20% cap on the ownership stake held by a single major shareholder of a cryptocurrency exchange. This measure is part of the country's broader effort to codify rules for the virtual asset industry, addressing issues such as market integrity, governance, and investor protection. By limiting concentrated control, regulators appear to be targeting potential conflicts of interest and the outsized influence that large stakeholders can exert over exchange operations.

For the market, this development signals continued regulatory tightening in a major economy. Existing exchanges with shareholders exceeding the threshold may need to restructure ownership, while new entrants must design their shareholding models accordingly. The precise scope—whether the cap applies to voting rights, equity, or both—and any grandfathering provisions will be key details to watch. Participants should also monitor how the law interacts with other pending crypto regulations, as the cumulative effect could shape South Korea’s competitive landscape. For now, the move underscores a global trend toward formalizing digital asset oversight.