Possibility of Reverse Discrimination Against Companies

Jang Dong-hyuk, floor leader of the People Power Party, voiced concerns that proposed regulations capping controlling shareholders’ stakes in digital-asset exchanges could lead to reverse discrimination against domestic companies.

In a congratulatory address 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, “Unless a reasonable regulatory framework aligned with the pace of industry growth is put in place, the domestic industry will inevitably fall behind in global competition,” adding that “the recently discussed regulation to limit controlling shareholders’ stakes in exchanges is a representative example.”

He noted, “Major global exchanges are leading the market through aggressive investment, enhanced security and swift decision-making. In this environment, artificially restricting ownership structures could weaken accountable management and trigger reverse-discrimination issues, with talent and capital flowing overseas.”

Earlier, the Democratic Party of Korea and the Financial Services Commission were reviewing a plan to finalize within this month the ruling party’s proposal for the Digital Asset Basic Act (second-stage legislation) that includes provisions related to stablecoins. The party and the government are discussing a structure centered on a bank-led consortium (50%+1 share) along with a plan to cap controlling shareholders’ stakes in digital-asset exchanges at around 15–20%.

If the regulation is introduced, changes to the governance structures of major exchanges such as 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 the acquisition of Dunamu, among others.