South Korea Proposes Ownership Caps for Core Crypto Exchanges Under the Basic Digital Asset Law, Affecting Upbit (Dunamu) and Bithumb

According to a December report cited by KBS, the Financial Services Commission (FSC) within the framework of the Basic Digital Asset Law has designated domestic crypto exchanges as the core infrastructure of virtual asset circulation. The list includes Upbit, Bithumb, Coinone, and Korbit, collectively serving about 11 million users.

The FSC proposal would limit ownership concentration by major shareholders to between 15% and 20%, with stakes up to 30% allowed only in special cases approved by mutual funds or the FSC. If adopted, Dunamu, operator of Upbit, could face constraints since the chairman holds roughly 25% of Upbit’s shares; Bithumb Holdings owns about 73% of Bithumb.

Crypto industry stakeholders have criticized the move as potentially excessive regulation beyond market norms. The regulatory shift could reshape the operating environment for exchanges and investors, underscoring the sector’s push for clarity, proportionality, and adherence to market fundamentals.