"Limits on major shareholders’ stakes in virtual-asset exchanges were not included in the initial blueprint for phase-two legislation"

Regulations limiting major shareholders’ stakes in virtual-asset (cryptocurrency) exchanges were reportedly not included in the initial legislative blueprint.

According to the industry on the 23rd, a commissioned research report that the Financial Services Commission requested from Seoul National University’s Financial Law Center during preparations for phase-two legislation under the Digital Asset Framework Act was said not to include provisions related to limits on major shareholders’ stakes in exchanges.

The report is follow-up research prepared after phase-one legislation in line with supplementary opinions from the National Assembly, and also serves as an initial blueprint for phase-two legislation. However, with regard to exchanges’ governance structures, it reportedly focused on general regulatory directions such as executive qualification requirements and the refinement of internal control standards, and did not present measures to cap specific ownership percentages.

Another issue under discussion—the stablecoin issuance model centered on banks—was also reportedly not included in the report.

The industry is paying attention to the fact that there is a gap between the recently discussed regulatory direction and the initial blueprint.