South Korea’s government outline for the Digital Asset Basic Act would generally cap controlling shareholders’ stakes in cryptocurrency exchanges at 20%, while allowing holdings of as much as 34% for operators that meet innovation-related and other conditions. The Financial Services Commission still aims to submit the draft as early as September to Political Affairs Committee chair Yoo Dong-su for introduction as lawmaker legislation, framing the measure as the country’s first framework law for virtual assets, including business categories, a shift from registration to licensing for exchanges, and stablecoin rules. On Aug. 26 the FSC reassigned Kim Sung-jin, the first head of its virtual asset division and the official who had led drafting of the government bill, to the asset management division, naming Seo Na-yoon as successor to oversee the final drafting stage and follow-up measures; the industry has raised concerns the change could delay submission. Shares above the ceiling would face voting-rights restrictions and potential disposal orders. Impact would differ by firm: Dunamu chairman Song Chi-hyung’s stake in the 25% range could be retained if the 34% exception is granted, while Bithumb’s largest shareholder above 70% would face unavoidable adjustment. FSC Chairman Lee Eok-weon told lawmakers on Aug. 24 that authorities were actively discussing submission timing, and passage remains uncertain amid property-rights concerns and committee turnover.