Rep. Kang Jun-hyun Says Crypto Exchange Ownership Caps Should Be Addressed Separately, Taxation Needs Social Consensus

Rep. Kang Jun-hyun of the Democratic Party said limits on major shareholders’ stakes in virtual asset exchanges should be discussed separately from the Digital Asset Basic Act at a later stage. On virtual asset taxation, he said the principle should be maintained, but only with sufficient social consensus.

Maeil Business Newspaper reported on September 15 that Kang said in a recent interview that if legislation is being delayed over the ownership cap alone, the issue could be regulated later at 20% or 30% based on social consensus. He proposed prioritizing enactment of the basic law and discussing limits on major shareholders’ stakes separately.

The government is currently reviewing a plan to cap major shareholders’ stakes in virtual asset exchanges at 20% in principle. Kang said the proposal had been presented without sufficient public debate and that industry views should be gathered through an open discussion process.

On the issuance of won-denominated stablecoins, he said discussions are under way on a consortium structure in which banks would hold a majority stake as the basic framework, while also allowing technology companies to become the largest shareholder. Details such as circulation and payments would be delegated to lower-level regulations, including an enforcement decree.

On virtual asset taxation, Kang said the principle is that taxes should be paid when income is generated, whether from stocks or coins. At the same time, he added that sufficient social consensus and advance communication are needed before implementation, given concerns about a market slowdown.