People Power Party: “Limits on crypto exchange stakes could disadvantage South Korean firms”

Jang Dong-hyeok, leader of the People Power Party, voiced concerns that regulations capping major shareholders’ stakes in digital-asset exchanges could lead to reverse discrimination against South Korean companies.

In congratulatory remarks at the seminar, “Measures to Develop the Digital-Asset Industry: Regulation and Innovation,” held on the 9th at the National Assembly Members’ Office Building in Yeouido, Seoul, Jang said, “If a reasonable regulatory framework aligned with the industry’s growth pace is not put in place, the domestic industry will inevitably fall behind in global competition,” adding that “the major-shareholder stake cap currently under discussion is a prime example.”

He noted, “Major global exchanges are leading the market through proactive investment, stronger security, and swift decision-making. In this environment, artificially restricting ownership structures could weaken accountable management and trigger reverse-discrimination problems in which talent and capital flow overseas.”

Earlier, the Democratic Party of Korea and the Financial Services Commission are reviewing a plan to finalize within this month the ruling-party bill for the Digital Asset Framework Act (phase-two legislation), which includes provisions related to stablecoins. The party and government are discussing a bank-led consortium structure (50%+1 share) along with a plan to cap major shareholders’ stakes in digital-asset exchanges at around 15–20%.

If the regulation is introduced, changes to the governance structures of major exchanges—Dunamu (Upbit), Bithumb, Coinone, Korbit and Streami (Gopax)—are expected to be unavoidable. Observers also say it could affect Mirae Asset, which is pursuing the acquisition of Korbit, and Naver, which is reviewing a takeover of Dunamu.