South Korean Crypto Execs Challenge Proposed 15-20% Stake Limits

VADODARA, February 4, 2026 — Top executives from South Korea's leading cryptocurrency exchanges have formally opposed a regulatory plan to cap major shareholder stakes. According to Digital Asset, the meeting occurred with Lee Jeong-mun, head of the ruling Democratic Party's Digital Asset Task Force. The proposal from the Financial Services Commission (FSC) aims to limit any single major shareholder's ownership to 15-20%.

Investigation: Exchange CEOs Confront Regulatory Blueprint

Executives from Dunamu, Bithumb, and Coinone attended the critical meeting. Dunamu CEO Oh Kyung-seok and Bithumb CEO Lee Jae-won represented their platforms. Coinone Co-CEO Cha Myung-hoon and DAXA executive vice chairman Kim Jae-jin also participated. The FSC's draft legislation targets exchange governance structures. It forms part of the second phase of digital asset rules shared with the National Assembly's Political Affairs Committee.

Market structure suggests concentrated ownership provides operational stability. Consequently, caps could force restructuring. This risks creating governance vacuums. On-chain data indicates Korean exchanges handle significant KRW-denominated volume. Any disruption impacts Asia-Pacific liquidity flows.

Market Context & Historical Precedent

South Korea's regulatory framework has evolved since the 2017 boom. The Special Financial Transactions Information Act implemented in 2021 mandated real-name banking. Historically, Korean policy shifts create immediate volatility. In contrast, Japan's exchange licensing model allows higher ownership concentrations.

Underlying this trend is a global push for decentralized control. The U.S. SEC has emphasized governance in its crypto enforcement actions. , the European Union's MiCA regulations focus on entity transparency, not ownership caps. This Korean proposal marks a unique structural intervention.

Related Developments: Regulatory uncertainty coincides with Bithumb's recent listing of Moonbird (BIRB) on its KRW market. Additionally, Crypto.com launched a CFTC-regulated prediction market, highlighting divergent global approaches.

Technical Architecture & Price Action

Bitcoin trades at $76,028, down 2.45% in 24 hours. The sell-off aligns with the Extreme Fear sentiment reading of 14/100. Technical analysis reveals a critical Fair Value Gap (FVG) between $74,500 and $75,200. This zone must hold as support.

A break below $74,500 invalidates the current bullish structure. It would signal a deeper correction toward the 0.618 Fibonacci retracement at $71,800. The 50-day moving average converges near $73,000, providing secondary support. RSI sits at 42, indicating neutral momentum with bearish bias.

Volume profile shows thin liquidity below $74,500. A breach could trigger a Liquidity Grab toward $70,000. Market analysts monitor UTXO age bands for signs of long-term holder distribution.

By The Numbers

Why It Matters

South Korea ranks as the world's third-largest crypto market by KRW trading volume. Exchange governance changes directly affect market stability. Caps could dilute founder control, potentially reducing operational efficiency. Institutional liquidity cycles depend on regulatory clarity.

Retail market structure in Korea shows high leverage usage. Uncertainty may increase margin call risks. The FSC's proposal mirrors broader financial stability goals outlined in its official financial policy frameworks. However, it diverges from crypto-native governance models.

Expert Commentary

"The 15-20% cap introduces forced decentralization at the entity level. While aimed at reducing systemic risk, it may inadvertently fragment liquidity. Historical cycles suggest that abrupt governance shifts precede volatility spikes. Market participants should monitor on-chain exchange flows for early warning signs." – CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed scenarios emerge from current market structure.

• Bullish Invalidation Level: $78,500. A break above this resistance confirms the regulatory news is priced in. It would signal a return to the prior uptrend, targeting $82,000.
• Bearish Invalidation Level: $74,500. A sustained break below this FVG support invalidates the bullish case. It opens a path to $71,800 and potentially $70,000.

The 12-month institutional outlook hinges on legislative clarity. If caps are implemented, exchange valuations may compress. This could slow venture capital inflows into Korean crypto projects. Over a 5-year horizon, fragmented ownership might reduce market resilience during stress events.