South Korea's Financial Services Commission: Restricting Shareholding in Virtual Asset Exchanges to Strengthen Regulatory Responsibility

According to a report by the Korean News Agency, the Chairman of the Financial Services Commission, Lee Ik-yeon, stated that the provisions regarding the shareholding restrictions for major shareholders of virtual asset exchanges in the ongoing "Digital Asset Basic Law" are not influenced by specific individuals, but rather consider the need for exchanges to bear higher public responsibilities after institutionalization.

Lee Ik-yeon mentioned during the National Assembly's Political Affairs Committee Financial Committee's national governance inspection that currently, South Korean virtual asset exchanges operate under a system of updating declarations every three years. However, after the implementation of the "Digital Asset Basic Law," exchanges will transition to a licensed institutional operation model. He noted that exchanges have infrastructure attributes, thus requiring public nature and responsibility that match their status.

Previously, South Korean lawmakers questioned why the original proposal from the Financial Services Commission did not include shareholding restrictions for major shareholders, whether the relevant provisions were influenced by external factors, and pointed out that if enforced, major shareholders and potential acquirers of South Korean exchanges might need to sell shares worth trillions of Korean won.

In response, Lee Ik-yeon stated that the government is currently drafting relevant legislation, and the specific content of the shareholding restrictions can be further coordinated during the National Assembly review process, emphasizing that all opinions will be fully reflected in the design. He also mentioned that the government proposal for the "Digital Asset Basic Law" is undergoing final coordination and will be submitted as soon as possible, although no specific timeline has been announced.