[South Korea Sets 20% Ownership Cap for Major Shareholders of Crypto Exchanges] According to Deep Tide TechFlow on March 4, as reported by The Block, South Korean regulators and lawmakers have agreed to set a 20% ownership cap for major shareholders of cryptocurrency exchanges, despite strong opposition from the industry. On Tuesday, the ruling Democratic Party's Digital Asset Task Force held a meeting with the Financial Services Commission (FSC), the top financial regulator, and agreed to set the ownership cap for major shareholders at 20%. However, in special cases defined by the FSC through executive orders, the ownership cap can be raised to a maximum of 34%. For major exchanges like Upbit and Bithumb, the new restrictions will take effect after a three-year grace period following the enactment of the legislation, while smaller exchanges will be granted an additional three years to adapt. This move will force significant restructuring for most major cryptocurrency exchanges in South Korea. For instance, Bithumb Holdings currently controls over 73% of Bithumb's shares, while Binance holds over 67% of Gopax's shares. According to reports, this ownership cap is expected to be included in South Korea's upcoming 'Basic Act on Digital Assets,' which will also address key issues such as stablecoin issuance and cryptocurrency ETFs.