The Humbling Reduction of Crypto Speculators in Korea

Lo and behold, the great Financial Services Commission of South Korea, akin to a capricious weather vane, has it decreed that their formidable crypto-exchanges, including Upbit and Bithumb, shall henceforth observe an ownership cap of 15-20%. This novel Digital Asset Basic Act, with its draconian measures, demands that the towering shareholders must make sacrifices, parting with a modicum of their golden interests. Such is the way of the world.

In a revelation that would cause even the stoic to frown, the head of the all-powerful financial regulator in South Korea unfurled their plans on Wednesday. The FSC, in its wisdom, yearns to tether the wild ownership of crypto exchanges. The proposal came draped in controversy, much like a noble frock worn by the washerwoman.

The FSC Chairman, Lee Eog-weon, during a convocation of scribes, defended these proposed shackles with the fervor of the devoted. He proclaimed that as these exchanges reach for the heavens, tighter governance becomes but necessary-a quaint affair as vital as ensuring a proper tie at tea.

Why Korea aspires to lessen founder control

The regulatory minds ponder caps, those rigid bounds, of 15 to 20 percent. These propositions are to be clasped to the awaiting Digital Asset Basic Act, as relayed by the Korea Times. It seems, according to Lee, that existing regulations, focusing solely on anti-money-laundering measures, warrant nothing but the warmest commendation, for they leave veritably little undone.

From Notification to perpetual Authorization, or so they decree

Currently, exchanges subsist under a mere notification system, reborn every three years, much like a phoenix festooned with bureaucracy. The proposed authorization system, a bastion of permanence, insists on more robust governance-so we are told. This urgency to elevate licensed exchanges to faux-public infrastructure is akin to demanding more lace on one’s doily.

Too much ownership concentration, says Lee, bears conflict and dishonors the integrity of the market. Securities exchanges already celebrate ownership limits. Hence, the virtual-asset platforms must be thus equally blessed or chastised.

Founders shall part with their boundless treasures

Over at Dunamu, where Upbit resides, Chairman Song-hyung Chi cherishes over 28 percent. In another corner of this tale, Coinone’s creator, Cha Myung-hoon, ambitiously poses with 53 percent. Should the bill find favor, such sizable spoils would be jettisoned. The corresponding conglomerates, bearing names such as Upbit, Bithumb, and Coinone, confront this overture with fervent disdain.

“Such a cap,” they protest, “would bleed our digital-asset industry!” Even the ruling Democratic Party whispers anxiety, fearing foreign markets wander without such constricting norms, leaving Korea languishing like an old man in fresh breeches.

Lee takes these complaints in stride yet asserts discussions continue. It is universally agreed upon that this policy bears necessity, though its framework invites ardent debate.

The Consequences for Majestic Exchanges

The FSC, acting in paternal authority, deems exchanges with over 1.7 million users as the core backbone of infrastructure. Upbit, Bithumb, Coinone, and Korbit join this esteemed list. Founders, they declare, clutch too much power, their riches pending benefits to all but a scant few.

The industry spokespersons cast these limits as an outright assault on property rights. Analytically minded individuals warn of forthcoming plummeting share prices and the challenges of finding buyers for these unsolicited luxuries.

A Merger Faces Torment

The grand Upbit-Naver Financial amalgamation faces renewed adversity. Naver Pay, initially bound to become Dunamu’s unrivaled lord, now mulls over the consequences. Bithumb Holdings, with a 73% claim over its namesake exchange, may find itself shedding more than half of its possessions-a mass upheaval awaiting.

An Era of Increasing Regard

Following the FSC’s proposal came the tightening of liability standards in December. Virtual-asset service operators are commanded to uphold compensation measures paralleling those of banking entities. Indeed, South Korea persists in binding the unruly financial crypto-crimes, now even applying their Travel rules to transactions under the modest sum of 1 million won ($680).

An Ever-evolving Debate

Such propositions, we are assured, remain unripe. Authorities profess a propensity for change in precise figures. Legal soothsayers anticipate a transition lasting perhaps a handful of years.

This marks Korea’s most grandiose structural pivot since exchanges sprouted wings. Whether this reform shall reinforce or convulse the industry lies in the sheets yet to be unfolded. In time, this framework may yet become a coveted ally or an ornate bother to the financial institutions, should they find suits interested in seizing stakes, hastening institutional adoption.

2026-01-29 03:19