#SouthKoreaDraftLawTargets15To20%ShareholderCap

## 🔍 Introduction

While many countries are still arguing about whether and how to regulate crypto, South Korea is writing the rulebook. 📖 Two big debates sit at the center of its upcoming Digital Asset Basic Act: who is allowed to own a crypto exchange, and who is allowed to issue a Korean won stablecoin. The answers could reshape one of Asia's most influential crypto markets. 🌏

## 🏛️ What Is the Digital Asset Basic Act?

The Digital Asset Basic Act is often described as the second phase of South Korea's virtual asset legislation. 📜 It aims to bring exchanges under a licensed system, similar to public financial infrastructure, and it also covers stablecoin issuance and crypto exchange-traded funds. A draft set a minimum capital requirement of 5 billion won for stablecoin issuers, and the bill still has to clear committee review and a National Assembly vote. ⚖️

## 📌 Part 1: Capping Exchange Ownership

In January 2026, Financial Services Commission (FSC) Chairman Lee Eog-weon said regulators wanted to limit major shareholders' stakes in crypto exchanges to between 15% and 20%. The idea is to move exchanges away from founder-controlled private companies toward something closer to quasi-public infrastructure, similar to alternative trading systems under Korea's Capital Markets Act. 🏦

By early March 2026, reports said the government and ruling party had settled on a **20% cap**, with a three-year grace period and possible exceptions up to 34%. ⏳ Some local reports suggested that Bithumb's accidental, very large bitcoin transfer earlier in the year added to concerns about internal controls at exchanges. 😬

### 😠 The Pushback

The Digital Asset Exchange Alliance (DAXA), which represents the five largest exchanges including Upbit and Bithumb, has warned that the cap could significantly impede the industry's growth. If enacted, some exchanges may need to dilute ownership or sell stakes. 📉 Opposition has also appeared inside the ruling party and among industry experts, so the final details are still contested. 🗣️

## 🏦 Part 2: Won-Backed Stablecoins

The second debate is about stablecoins pegged to the Korean won. 💴 The Bank of Korea has argued that issuance should be limited to consortia where commercial banks hold at least a 51% stake, to protect financial stability and monetary policy. This is the famous "51% rule."

Not everyone agrees. 🤝 Some regulators and lawmakers fear a bank-only model would limit competition, and reports have noted that the issuer question has stalled parts of the legislation. Under the model being discussed, technology companies could take part as minority stakeholders. Firms such as Toss have said they plan a won-backed stablecoin once rules are finalized. Eight major banks, including KB Kookmin, Shinhan and Woori, had already formed a consortium to explore a won stablecoin. 🏧

The demand is real: Chainalysis estimated that won-denominated stablecoin purchases totaled about $64 billion in the 12 months through June 2025. 📊

## 🧭 The Direction of Travel

Put together, South Korea's moves point in four directions:

- 🔍 **More transparency:** Exchanges become licensed, supervised entities.

- 🏢 **More institutional participation:** Banks play a central role in stablecoins.

- 🛡️ **Stronger investor safeguards:** Better governance and internal controls.

- 📏 **Higher standards:** Capital and ownership rules for crypto businesses.

## 🌍 Why the World Is Watching

South Korea has long been one of the most active and influential crypto markets in Asia. 🔥 Its retail traders move fast, and its exchanges list tokens that can swing global prices. If the country shows that strict governance and a thriving crypto sector can coexist, other regulators may copy the model. If the rules choke competition, it will become a warning instead. 🤔

## ⚠️ Risks and Open Questions

1. 🕰️ **Timing:** The bill still needs final votes, and key points keep changing.

2. 🔀 **Restructuring:** Ownership caps could trigger sales, mergers and deal disruptions.

3. 🏦 **Bank vs fintech:** A bank-dominated stablecoin model could slow innovation.

4. 🌐 **Global ripple effects:** Foreign exchanges and token projects may need to adjust.

## ✅ Conclusion

South Korea is entering a new phase where growth, regulation and trust are expected to move together. 🚀 Whether the final law sets a global example or stirs controversy, it is one of the most important crypto policy stories to follow. Traders and investors should track updates from official sources, since details may change before the law passes. 👀

⚠️ *This article is for education only and is not financial advice. Please do your own research.*

**** #SouthKorea 🇰🇷 #CryptoRegulation ⚖️ #Stablecoin 💴 #DigitalAssetBasicAct 📜 #CryptoNews 📰

Sources:

- [South Korea to Cap Major Shareholder Stakes in Crypto Exchanges at 20%](https://www.crowdfundinsider.com/2026/03/265492-south-korea-to-cap-major-shareholder-stakes-in-crypto-exchanges-at-20/)

- [South Korean authorities settle on 20% ownership cap (The Block)](https://www.theblock.co/news/regulation/2026-03-04-south-korean-authorities-settle-ownership-limit-392169)

- [South Korea to cap crypto exchange ownership at 20% (Tangem)](https://tangem.com/en/news/regulation/16815-south-korea-to-cap-crypto-exchange-ownership-at-20/)

- [Govt to impose cap on crypto exchange ownership (Korea Times)](https://www.koreatimes.co.kr/economy/cryptocurrency/20260128/govt-to-impose-cap-on-crypto-exchange-ownership-citing-broader-public-role/)

- [Why South Korea is struggling to decide who can issue stablecoins (Cointelegraph)](https://cointelegraph.com/news/why-south-korea-is-struggling-to-decide-who-can-issue-stablecoins)

- [What is the '51% rule'? (Korea Times)](https://www.koreatimes.co.kr/economy/policy/20251223/explainer-what-is-51-rule-bank-led-stablecoin-plan-stalls-koreas-digital-asset-legislation)

- [South Korea finalizes draft of Digital Asset Basic Act](https://whale-alert.io/stories/9a81019c4d323a/South-Korea-finalizes-draft-of-Digital-Asset-Basic-Act-sets-5bn-stablecoin-capital-pairs-regulation-with-pro-crypto-measures)

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