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South Korea’s Financial Services Commission (FSC) has proposed to limit the ownership participation of major shareholders in cryptocurrency exchanges to between 15-20%, a regulatory wealth introduced on December 30-31 that now casts a long shadow over the industry’s 2026 prospects.
The proposal would force the founders and controlling shareholders of Korea’s five largest stock exchanges to divest a large portion of their holdings.
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A new year is shrouded in uncertainty
The timing of the announcement – just days before the start of the new year – had industry participants scrambling to assess the ramifications. Local media published The story For the first time on December 30, which was then covered by the main financial entities. What was expected to be a festive period representing another year of growth in one of the most active cryptocurrency markets in the world, has in fact become a period of anxious speculation about the future of the exchange’s ownership structures.
“The industry entered 2026 under a cloud of regulatory uncertainty,” an exchange executive told reporters. “Businesses that were about to close are now back to the point of attraction.”
Radical changes in government
Under the proposed Basic Law of Digital Assets, the Council aims to transform cryptocurrency exchanges from private institutions controlled by the founders to… Semi-public infrastructuresimilar to Alternative Trading Systems (ATS) under the Korean Capital Markets Law.
The impact will be immediate and long-lasting:
| contributor | currently | purse | It requires divestment |
|---|---|---|---|
| abt (donate) | Founder (Song Chi-hyung) | 25.52% | 5-10% |
| Beethumb | Beethumb Holdings | 73.56% | 53-58% |
| Quinone | Founder (Cha Myung-hoon) | 53.44% | 33-38% |
| Corbett | NXC | 60.5% | 40-45% |
| Jobax | Binance | 67.45% | 47-52% |
The proposal also marks a shift from the current registration system to a full licensing system, where regulators will conduct health reviews of major shareholders – a level of scrutiny previously reserved for traditional financial institutions.
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Great deals in the murmured state
Two of the most important institutional developments in the Korean crypto sector are now facing major complications.
It is directly affected by the planned merger of Naver with Donamowhich will create a fintech giant worth about 20 trillion won ($14 billion). The current structure – where Naver Pay retains 100% of Donamo – is fundamentally inconsistent with the proposed ownership limits.
Likewise, It faces the acquisition of Korbit by Mirae Assetwhich recently signed a memorandum of understanding with major shareholders NXC and SK Planet, has an uncertain path ahead. Industry observers point out that the investment of more than 100 billion won without ensuring management control undermines the strategic logic of the agreement.
Reduce the wall between finance and digital currencies
An important aspect of the proposal relates to relaxing Korea’s strict separation between traditional finance and virtual asset companies.
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Since the end of 2017, when the government imposed a general regulation of cryptocurrency amid a speculative wave, the authorities have maintained the unwritten rule. It prohibits banks, insurance companies and other financial institutions from investing in or collaborating with cryptocurrency companies – a policy aimed at insulating the traditional financial system from the volatility and risks of digital assets. Although it has not been codified in law, this principle has kept established financial players on the sidelines of the cryptocurrency market in Korea.
The FSC now seems to recognize that achieving property distribution while maintaining market stability requires the participation of existing financial institutions. This may open the door for securities firms and asset managers to take stakes in exchanges, which could accelerate institutional adoption and development of securities tokenization (STO) and real asset tokenization (RWA) offerings.
Industrial reaction
Stock market operators responded with strong criticism. Key issues include the potential disappearance of responsible controlling shareholders, which could create ambiguity around liability when problems arise. Some argue that rules of conduct and restrictions on voting rights would be more appropriate than forced dispersal of property.
There is also concern that domestic-only restrictions may inadvertently benefit foreign competitors as offshore platforms gain market share as Korea’s exchanges struggle to restructure.
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“The government is trying to regulate far beyond market guidelines,” said an industry representative. “Legislation aimed at promoting the virtual asset industry and protecting consumers may violate property rights and destabilize corporate governance.”
Global implications
Korea’s proposal comes amid a broader regional push to legalize the governance of digital currency exchanges. Indonesia launched The first state-backed cryptocurrency exchange in the world In 2023, with regulations limiting cross-ownership between exchanges to 20%. Vietnam provided Licensing systemBy September 2025, it requires a minimum capital of $378 million and establishes a foreign ownership ceiling of 49%.
However, Korea’s approach goes further, targeting existing market leaders rather than setting the rules for new companies. Forcing the founders of established exchanges to give up significant stakes is unprecedented among major currency markets. With 11 million registered users, Korea’s experiment in retroactive distribution of ownership will be closely watched by regulators elsewhere trying to impose utility-style governance on private platforms that have already achieved dominance.
What comes next?
The Federal Election Commission has confirmed that the proposal is not final, with officials saying that details including specific ownership limits are still being discussed. Legal experts suggest that a transition period of 5 to 10 years should be given to allow gradual compliance.
Currently, the Korean crypto industry enters 2026 facing the prospect of its biggest structural transformation since the launch of the first exchanges 13 years ago. The coming months will determine whether this change will strengthen market fundamentals or disrupt the momentum that has made Korea a world powerhouse in cryptocurrencies.
