South Korea to Introduce Digital Asset Law in Early September With 20% Cap on Crypto Exchange Major Shareholders

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South Korea’s financial authorities plan to submit a government-backed draft of the Digital Asset Basic Act to the National Assembly as early as next week, including a provision to cap major shareholders’ stakes in crypto exchanges at 20% regardless of market share.

The Financial Services Commission plans to introduce the bill in early September through legislation sponsored by Democratic Party lawmaker Yoo Dong-soo, chair of the National Assembly’s Political Affairs Committee, after consultations with the ruling party, Herald Business reported on August 26. The bill would set rules for stablecoin issuance and distribution and establish broader regulations for virtual asset businesses.

A limit on major shareholders’ stakes in crypto exchanges has emerged as the biggest issue in the legislation. Authorities are discussing a single cap that would apply equally regardless of an exchange’s size or market share, with the current draft built around a 20% ceiling.

The proposal is intended to encourage traditional financial companies, including banks, to participate in exchange governance and to prevent any single shareholder from exercising unilateral control over management.