South Korean Financial Commission Responds to Controversy Over Shareholding Restrictions for Virtual Asset Exchanges

The Chairman of the South Korean Financial Commission, Lee Ik-yeon, stated that the provisions regarding shareholding restrictions for major shareholders of virtual asset exchanges in the ongoing "Basic Law on Digital Assets" aim to strengthen regulatory responsibilities and are not targeted at specific companies. In his speech at the National Assembly, Lee pointed out that the current system of updating declarations every three years will transition to a licensed operational model after the implementation of the Basic Law on Digital Assets. He emphasized that exchanges, as infrastructure, need to possess corresponding public and accountability characteristics. Previously, members of the National Assembly questioned whether the original proposal from the Financial Commission lacked clauses on major shareholder shareholding restrictions due to external influences, and noted that mandatory implementation could force major shareholders and potential acquirers to sell shares worth trillions of Korean won. Lee responded that the government is drafting relevant legislation, and the content of the shareholding restrictions will be further coordinated during the National Assembly's review, fully reflecting various opinions. He also mentioned that the government proposal for the Basic Law on Digital Assets is undergoing final coordination and will be submitted as soon as possible, although no specific timeline has been announced.

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