A display board shows the price of bitcoin at the Upbit customer center in Seoul's Gangnam District, Tuesday. Newsis
Attention is focusing on the fate of the government’s plan to cap major shareholders’ stakes in virtual asset exchanges at 20 percent after the National Assembly’s research body warned that the measure may be unconstitutional, lawmakers and industry officials said Thursday.
A policy consultation between the Financial Services Commission (FSC) and the ruling Democratic Party of Korea (DPK), originally scheduled for Thursday morning to finalize the proposed regulation, was postponed. Authorities said the delay was intended to allow financial authorities to prioritize market stabilization efforts as volatility in local equity and currency markets surged amid escalating tensions in the Middle East.
The session had been expected to finalize a comprehensive bill that would impose a 20 percent ceiling on major shareholders of virtual asset exchanges and introduce a regulatory framework for stablecoins under the tentatively titled Digital Asset Basic Act.
The FSC, the country’s top financial regulator, has maintained that exchange ownership should be capped at 15 to 20 percent, mirroring the rules governing alternative trading systems under the Capital Markets Act.
However, some DPK officials have urged a more cautious approach, prompting the regulator to put forward a revised proposal that would grant a three-year grace period before the cap takes effect and to consider applying differentiated ownership limits based on an exchange’s market share.
Even with a grace period, industry players say they are taken aback by what they view as unprecedented state intervention, as the proposed rule would compel privately owned virtual asset exchanges to dilute their ownership structures.
“Key M&A transactions in the sector, such as a share swap between Dunamu and Naver Financial, Mirae Asset Financial Group’s planned acquisition of Korbit and Binance’s purchase of Gopax, could be disrupted under the new cap,” a cryptocurrency industry official said.
Adding to the uncertainty, the National Assembly Research Service has warned that the ownership restriction may run afoul of the Constitution.
In a report provided to Rep. Kim Sang-hoon of the main opposition People Power Party, the research body said the measure could infringe upon fundamental rights, including property rights and the freedom to conduct business.
Source: Korea Times News
