South Korea’s crypto industry enters 2026 facing major uncertainty as regulators move to curb concentrated ownership of the country’s top exchanges.
Key Takeaways
- South Korea’s Financial Services Commission (FSC) has proposed capping individual ownership stakes in crypto exchanges at 15 to 20 percent.
- The regulation would force top shareholders in exchanges like Upbit, Bithumb, Coinone, and Korbit to sell off large portions of their holdings.
- Ongoing deals including Naver’s $14 billion merger with Dunamu and Mirae Asset’s acquisition of Korbit could collapse under the proposed framework.
- Industry insiders are raising concerns over property rights, strategic uncertainty, and market instability tied to the forced divestment plan.
What Happened?
At the end of December 2025, the Financial Services Commission unveiled a bold proposal to limit ownership stakes in major crypto exchanges as part of the upcoming Digital Asset Basic Act. The changes aim to reclassify large exchanges as core financial infrastructure, shifting their governance away from founder-led models toward a more dispersed and regulated structure.
Seoul weighs crypto exchange ownership caps as Naver, Mirae Asset push into crypto
— CoinsCapture (@CoinsCapture) December 31, 2025
South Korean regulators are considering caps on ownership of crypto exchanges as major conglomerates such as Naver and Mirae Asset move deeper into the digital asset sector. pic.twitter.com/4mN1YDizmf
Proposed Rules Could Reshape Korea’s Crypto Landscape
The FSC’s plan would cap individual voting rights in crypto exchanges at 15 to 20 percent, citing concerns about excessive control, profit concentration, and weak accountability. This mirrors existing rules under the Capital Markets Act for Alternative Trading Systems, where exceptions to the cap are rarely granted and only under strict regulatory approval.
According to internal documents obtained by KBS, the FSC considers exchanges with more than 11 million users as “core infrastructure” for digital asset distribution. This would include Upbit, Bithumb, Coinone, and Korbit, along with Binance-owned GOPAX.
Here’s a breakdown of how the proposed cap would impact key players:
- Upbit (Dunamu): Founder Song Chi-hyung holds 25.52%, requiring a divestment of up to 10%.
- Bithumb: Bithumb Holdings owns 73.56%, with over 53% needing to be sold.
- Coinone: Chairman Cha Myung-hoon holds 53.44%, requiring a 33 to 38% divestment.
- Korbit: NXC holds 60.5%, triggering a required sale of 40 to 45%.
- GOPAX: Binance owns 67.45%, meaning a potential sale of 47 to 52%.
The proposed system would also shift exchanges from a simple registration process to a full licensing regime, including “fit and proper” shareholder reviews similar to those used for banks and securities firms.
Deals on Hold and Strategic Partnerships at Risk
Two major corporate transactions now hang in the balance. Naver Financial’s merger with Dunamu, expected to create a fintech giant worth over 20 trillion won ($14 billion), is incompatible with the new cap since Naver would hold 100% of Dunamu post-merger.
Likewise, Mirae Asset’s planned acquisition of Korbit, based on a memorandum of understanding with current stakeholders NXC and SK Planet, could unravel. Without management control, insiders say the strategic appeal of the deal diminishes, especially given the more than 100 billion won likely investment.
The FSC, however, may ease long-standing restrictions to allow banks and financial firms to invest in exchanges, signaling a potential increase in institutional involvement and security token offerings.
Industry Pushback and Political Tensions
Crypto industry leaders are pushing back, calling the ownership cap an overreach that infringes on property rights. They argue that forced divestments will shake investor confidence, create market imbalances, and weaken domestic exchanges against international competitors.
There’s also concern about liquidity shocks if large blocks of shares flood the market at once. Smaller shareholders could lose value, and finding buyers for these massive stakes may not be easy, especially under uncertain regulatory terms.
Political scrutiny is also rising. Democratic Party floor leader Kim Byung-ki is under fire for allegedly directing attacks against Upbit while his son interned at rival exchange Bithumb, intensifying the spotlight on crypto’s regulatory future in South Korea.
Meanwhile, the stablecoin policy debate continues to stall progress on the broader Digital Asset Framework. The Bank of Korea insists that only bank-led consortiums should issue stablecoins, proposing a model where banks hold a minimum 51% stake.
CoinLaw’s Takeaway
Honestly, this move could completely reshape how crypto works in Korea. In my experience, when regulators demand such sweeping retroactive changes, it sends shockwaves through markets. I get the need for oversight, but forcing founders to sell off half their companies? That’s a drastic step. It feels like the FSC is trying to retrofit crypto into a traditional finance mold. While institutional backing sounds good on paper, it risks crushing the entrepreneurial energy that built this space in the first place. I’ll be watching this closely, because how Korea handles this could ripple out across global crypto regulation.
