Digital Asset Basic Act leaves Korean exchange ownership unsettled

The Digital Asset Basic Act is South Korea's unfinished rule on who may own a crypto-asset exchange and who may issue a token pegged to the Korean won (KRW). It is not law, and parliament can still change both answers.

On November 8, 2026, Seoul Economic Daily reported that the Financial Services Commission (FSC) expected to introduce the bill within the month, that Chairman Lee Eok-won had described about 135 articles, and that the leading ownership option was a 15% to 20% cap on major shareholders. Blockhead restated that account on November 12, 2026.

Key facts

• As of November 12, 2026 the FSC was in final consultations to introduce the bill within the month. Seoul Economic Daily and Blockhead give no bill number, vote or effective date.
• Chairman Lee Eok-won had described about 135 articles, expected to grow, covering issuance, virtual asset service providers (VASPs) and exchanges (Seoul Economic Daily, November 8, 2026).
• Leading ownership option: a 15% to 20% cap on major shareholders, about three years to sell the excess with no sanction inside the window, in line with the Financial Investment Services and Capital Markets Act (FSCMA) limit for alternative trading systems. Some observers would limit votes instead.
• Won-pegged issuance would sit with bank-centred consortiums. crypto.news, citing ZDNet Korea, reported a dispute over banks holding at least 50% plus one share, and said the FSC had not finalised that test.
• From July 19, 2024, cold wallets must hold more than 80% of users' virtual assets and banks must hold customer money. At KRW 5 billion of unfair profit the minimum term is five years, up to life (FSC, June 25, 2024).
• The ruling party has tied passage to delaying crypto taxation (Seoul Economic Daily). Blockhead alone reports a fourth delay, to 2029, naming Finance Minister Lee Hyoung-il.

Methodology and sources

The unpublished bill is taken from Seoul Economic Daily's English edition of November 8, 2026, Blockhead on November 12, 2026, and crypto.news on November 12, 2026, citing ZDNet Korea. That English edition says it is an artificial-intelligence translation and that quotations from Korean reports may not match the original words, so officials are paraphrased, not quoted as speech. Facts that appear only in Blockhead are credited only to Blockhead.

Related:The SEC's crypto broker-dealer rule has no public text

In-force Korean rules are the FSC decree release of June 25, 2024, the note that the Act took effect on July 19, 2024, and the account of enactment. Hong Kong figures are the Hong Kong Monetary Authority (HKMA) release of July 29, 2025 and its July 2025 explanatory note. Singapore figures are Monetary Authority of Singapore (MAS) releases of August 15, 2023 and September 1, 2026. The named order is Commodity Futures Trading Commission (CFTC) release 8825-23 of November 21, 2023. No November 2026 bill text was attached to the reports.

What the reported Digital Asset Basic Act would actually decide

The two clauses that stalled the bill do different jobs. One allocates control of the order book. The other allocates who may create a liability meant to track the Korean won (KRW). Seoul Economic Daily reported that regulators had wanted a text the previous year and could not close either point. Choosing an issuer does not choose an owner.

Blockhead said a secondary write-up's one-to-two-year window, no-fault hack pay-outs and suspension for missing customer crypto-assets were not confirmed by Seoul Economic Daily, so they are not bill text.

The Digital Asset Basic Act, as Seoul Economic Daily described it on November 8, 2026, is a government bill the Financial Services Commission was preparing to introduce within the month. It is not in force. A senior official said little had changed from an earlier draft. Chairman Lee Eok-won had put the length at about 135 articles. The leading rule would cap major shareholders of exchanges at 15% to 20%, in line with the alternative-trading-system limit under the Financial Investment Services and Capital Markets Act, with about three years to sell any excess and no sanction for a sale inside that window. Another option would limit votes rather than shares. Won-pegged tokens would come from bank-centred consortiums, as the Bank of Korea has argued, but parliament could still change the cap and who may issue. Blockhead restated the account on November 12, 2026. Neither outlet printed a bill number or a vote.

Phase one uses banks for a different job. Enacted on July 18, 2023 and in force on July 19, 2024, the user-protection Act and the June 25, 2024 decree put customer money at banks and require more than 80% of users' virtual assets in cold wallets. VASP registration dates from March 2021. The same habit of legislating a first slice only is the decision to date only stage one of securities tokenisation.

How Korea, Hong Kong and Singapore split owners from issuers

Hong Kong and Singapore have issuer regimes on the book. Neither uses a 15% to 20% cap on exchange shareholders. Korea's reported bill is the text that tries to settle venue control and the mint in one package, and it is the only one of the three that is not law.

Sources: FSC, June 25, 2024; FSC, July 19, 2024; Seoul Economic Daily, November 8, 2026; crypto.news, November 12, 2026; HKMA, July 29, 2025; HKMA explanatory note; MAS, August 15, 2023; MAS, September 1, 2026. These source pages were checked on November 13, 2026.

Hong Kong and Singapore already show an issuer rule that is not a shareholder percentage. From August 1, 2025, section 14(1) of the Stablecoins Ordinance (Cap. 656) requires a licence, and the HKMA note of July 2025 sets paid-up capital at not less than HKD 25,000,000 unless the applicant is an authorized institution, with prior consent for controllers. The MAS release of August 15, 2023 required par redemption within five business days for an MAS-regulated stablecoin and set no bank-majority test. The September 1, 2026 paper would place that framework in the Payment Services Act 2019. Comments were due on October 16, 2026, and the paper does not enact the amendments. Korea's reported 15% to 20% cap, with about three years to sell down, is Seoul Economic Daily's account of November 8, 2026. A bank stake of at least 50% plus one share appears only in crypto.news, citing ZDNet Korea, which also said the FSC had not finalised issuer ownership.

"MAS’ proposed legislative amendments will give effect to a stablecoin framework that promotes responsible financial innovation. The framework will provide clear regulatory guardrails for stablecoins that meet high standards of value stability and governance. This is important as asset tokenisation gains traction. Trusted and well-regulated stablecoins can serve as a credible settlement asset in tokenised financial markets, while mitigating risks to users and the broader financial system."

— Ho Hern Shin, Deputy Managing Director (Financial Supervision), Monetary Authority of Singapore (MAS, September 1, 2026)

That is a conduct test, not a rule that only a bank may mint, and no published Korean article shows which view won. An MAS draft that would let the authority delist a foreign systemic stablecoin removes a coin rather than forcing a sale of shares. The same split of roles is set out in how the Bank and the FCA split systemic sterling issuers.

What the in-force penalty scale covers, and what Binance's order does not

A Korean VASP can already be sanctioned for unfair trading, not for the size of a stake. The FSC release of June 25, 2024 sets a minimum of one year, or a fine of three to five times the unfair profit. At KRW 5 billion or more it is five years, up to life, plus a surcharge of twice the profit or up to KRW 4 billion if the profit cannot be calculated.

Those releases lack a completed judgment naming an exchange, a hearing date and a won figure. On November 21, 2023 the CFTC said Changpeng Zhao and Binance Holdings Limited, Binance Holdings (IE) Limited and Binance (Services) Holdings Limited had agreed a proposed consent order for Judge Manish Shah in the Northern District of Illinois. If entered, Binance would disgorge US$1.35 billion and pay a US$1.35 billion civil monetary penalty, and Zhao would pay US$150 million. With the Department of Justice, the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), penalties exceeded US$4.3 billion. It was still subject to court approval, and it predates the 2026 incident in Blockhead.

"Binance’s activities undermined the foundation of safe and sound financial markets by intentionally avoiding basic, fundamental obligations that apply to exchanges, all the while collecting approximately $1.35 billion in trading fees from U.S. customers."

— Rostin Behnam, then Chairman, Commodity Futures Trading Commission (CFTC release 8825-23, November 21, 2023)

Blockhead, citing Seoul Economic Daily, wrote that GOPAX, in which Binance holds about two-thirds, halted trading on November 6, 2026 after a threat email and was still offline on November 8. It also referred to 27 blocked unregistered overseas exchanges. Neither figure is in the FSC releases. A two-thirds holder would clear a 15% to 20% line only if that option became law and the stake is right. US$4.3 billion is not a Korean fine.

What this means for exchanges, issuers and compliance teams

For a registered VASP the live duties are the June 25, 2024 decree: customer won at a bank, separate from firm money, and more than 80% of customer virtual assets in cold wallets. The November reports give no section number and no filing deadline for the Digital Asset Basic Act.

Major shareholders have no clock yet. About three years to sell, with no sanction if the sale falls in the window, is only the leading option in Seoul Economic Daily. A voting cap would remove the ballot instead of forcing a disposal.

Issuers sit in their own queue. Phase one made banks custodians of client money. Naver Financial's proposed purchase of Dunamu, the Upbit operator, lacked final approval, and on November 10 the Korea Fair Trade Commission opened a review of 10 markets, including a future won-pegged market.

Funds and custodians inherit those phase-one custody facts, not a new capital charge from an unintroduced bill. Japan's tokenised-deposit test, where a stablecoin took the interbank leg, is a bank settlement tool, not the Korean text.

"Licensing standards should be established based on business capabilities and risk management systems rather than limiting issuers to banks."

— Ryu Hong-ryeol, chief executive, VIDEX, in the English wording crypto.news gave for a National Assembly forum on November 12, 2026 (crypto.news)

The same report gave a second line: "Financial institutions and technology companies are in a mutually complementary relationship, not a replacement." That is the industry answer to a bank-majority rule. The English is the outlet's translation. The dispute matches the Seoul paper's report that ruling-party lawmakers remain split.

What parliament can still change before any vote

Introduction during November 2026 is not passage. Seoul Economic Daily said the cap and issuer eligibility can still move in the National Assembly, including inside the ruling party. The 15% to 20% band, the three-year grace, the voting-rights alternative and the 50% plus one share idea remain negotiating positions until a printed bill exists.

The ruling party has treated passage as the price of delaying crypto taxation, that paper reported. Blockhead alone added a fourth delay, to 2029, and named Finance Minister Lee Hyoung-il, linking the date to United States tax-data sharing and to the Digital Asset Basic Act.

The Korea Fair Trade Commission file on Dunamu and Naver Financial, dated November 10, 2026 by crypto.news, already counts a future won-pegged market among 10 markets. Singapore's comment window closed on October 16, 2026. Hong Kong's regime has applied since August 1, 2025, and the explanatory note has no Korean-style percentage cap. Until the Assembly has a text, those foreign statutes are comparisons, not predictions. Further filing is on the regulation desk.

TL;DR

The Digital Asset Basic Act is not law. Seoul Economic Daily reported on November 8, 2026 that the FSC aimed to introduce it within the month, that Chairman Lee Eok-won had spoken of about 135 articles, and that the leading ownership option was a 15% to 20% cap on major shareholders, with about three years to sell any excess. crypto.news, citing ZDNet Korea, reported an unsettled idea that banks hold at least 50% plus one share. VASPs are already under the user-protection Act from July 19, 2024, including cold-wallet holdings above 80%. No bill number or vote is in these sources.

Frequently asked questions

Is the Digital Asset Basic Act already Korean law?

Seoul Economic Daily reported on November 8, 2026 that the FSC was in final consultations and expected introduction within the month. Neither report prints a bill number, a vote or an effective date. The binding statute is the Act on the Protection of Virtual Asset Users, enacted on July 18, 2023 and in force since July 19, 2024. Ownership caps and issuer rules for won-pegged tokens remain proposals.

Who may own a Korean crypto exchange under the reported bill?

No one is limited yet, and Seoul Economic Daily's leading option of November 8, 2026 would cap major shareholders at 15% to 20%, in line with the FSCMA alternative-trading-system limit, with about three years to sell the excess and no sanction if the sale is in time. Some observers would restrict votes instead of forcing a sale. Blockhead said a secondary claim of a one-to-two-year window was not confirmed by that paper. Today's regime is registration from March 2021 plus the user-protection duties. It is the current duties regime.

Who would be allowed to issue a won-pegged token?

The outlets describe two competing tests. Seoul Economic Daily expects bank-centred consortiums, the Bank of Korea model, and says eligibility can change in parliament. crypto.news, citing ZDNet Korea on November 12, 2026, reported a split over banks holding at least 50% plus one share, with exchanges possibly left to distribute and settle, and said the FSC had called issuer ownership unfinished. A bank-centred group is not the same rule as statutory control. Phase one makes banks custodians of customer money. That is a different job, and neither issuer version has been enacted.

What must a Korean exchange already do?

Since July 19, 2024 the user-protection Act has required VASPs to safeguard customer assets. The June 25, 2024 decree keeps customer money at banks, separate from firm funds, and more than 80% of users' virtual assets in cold wallets. The FSC may set a higher ratio for one firm. Unfair trading, including misuse of non-public information and manipulation, carries at least one year or a fine of three to five times the profit, with higher minima as the profit grows, plus a surcharge. The Financial Supervisory Service inspects firms. None of this waits on the Digital Asset Basic Act.

How does the Korean idea differ from Hong Kong and Singapore?

Hong Kong's Stablecoins Ordinance (Cap. 656) has applied since August 1, 2025. Issuers need a section 14(1) licence, paid-up capital of at least HKD 25,000,000 unless they are an authorized institution, and prior consent for controllers. That rule is a licence and capital floor. MAS required, on August 15, 2023, par redemption within five business days for an "MAS-regulated stablecoin", and on September 1, 2026 proposed to legislate the framework. Comments were due on October 16, 2026. Those releases leave bank majority unrequired. Korea's consortium, and the disputed 50% plus one share idea, would be a tighter gate.

Does the CFTC Binance order set Korean ownership rules?

Release 8825-23, dated November 21, 2023, is a proposed consent order against Binance and Changpeng Zhao in the Northern District of Illinois. The sums were US$1.35 billion disgorged and US$1.35 billion as a civil monetary penalty for Binance, plus US$150 million for Zhao, inside a set of resolutions the CFTC put above US$4.3 billion. The case was an unregistered derivatives venue. Blockhead's report of a Binance stake of about two-thirds in GOPAX would matter only if a 15% to 20% cap became law and the figure is right. The order leaves the Korean bill untouched.

Informational analysis only, and not legal, regulatory, tax, or investment advice; frameworks change and primary documents supersede summaries, so firms should consult qualified counsel and their supervisory authority before acting on the analysis above.