The Democratic Party of Korea and the financial authorities have reportedly reached a compromise on limiting the equity of major shareholders in virtual asset exchanges, the biggest sticking point in the Digital Asset Basic Act (stage-two virtual asset bill). For Upbit and Bithumb, which have the highest market shares, the plan limits major shareholders' equity to 20%, with implementation after a three-year grace period.
According to the financial sector on Feb. 4, the Democratic Party of Korea's digital asset task force (TF) reached a compromise the previous day with the Financial Services Commission on whether to limit major shareholders' equity.
The TF and the Financial Services Commission (FSC) reportedly agreed to set the cap on major shareholders' equity at 20%, but allow up to 34% under exceptions determined by the FSC through an enforcement decree. Under the compromise, the major shareholder equity cap would fully take effect three years after the law's implementation. Upbit and Bithumb, which together account for around 90% market share, would be the first to be subject to the equity cap, while Coinone, Korbit, and GOPAX, which have lower market shares, would receive a grace period of up to six years.
A TF official said, "A final plan is expected to be decided at the party-government consultation on the 5th. There is room for the specific numbers to change."