South Korean Financial Authority Endorses Shareholder Restrictions for Digital Currency Platforms
Chief of the Financial Services Commission confirms ownership restrictions remain in discussions while legislators consider the Digital Asset Basic Act before the mid-February cutoff date.
The nation's leading financial oversight authority in South Korea has stated that digital currency platforms should be subject to shareholder restrictions comparable to those imposed on securities trading venues, indicating a more assertive public position on governance changes within the framework of the country's pending Digital Asset Basic Act.
Based on reporting from The Korea Times, Financial Services Commission (FSC) Chairman Lee Eog-weon stated that authorized digital currency platforms should cease being regarded as conventional private enterprises and instead be recognized as entities possessing public-infrastructure qualities.
The chairman's statements arrive during a period when the FSC examines a recommendation to restrict controlling shareholders' holdings in digital currency platforms to approximately 15% to 20%, a policy that has encountered opposition from platform operators and sparked worries among the governing Democratic Party.
Although the shareholder restriction has been deliberated for multiple weeks, Lee's statements represent the most explicit endorsement to date from the FSC, demonstrating its inclination to advance with more rigorous governance benchmarks as platforms transition toward an official authorization framework.
Shareholder restrictions transition from policy blueprint to public advocacy
The shareholder limitation was detailed earlier during the current month within a policy alignment document presented to the National Assembly as component of groundwork for the Digital Asset Basic Act, as reported by Yonhap News Agency.
The documentation characterized platforms as "essential infrastructure" for the digital asset marketplace and contended that concentrated shareholder control could compromise market trustworthiness.
According to the recommendation, digital currency platforms would transition from a notification framework that demands renewal every three years to an authorization structure providing more enduring operational standing.
Lee indicated that the transition necessitates governance regulations consistent with securities platforms and alternative trading mechanisms. This encompasses shareholder restrictions and qualification assessments.
Local platforms have reportedly cautioned that such limitations could disturb current shareholder configurations.
The Korea Times disclosed that Dunamu Chairman Song Chi-hyung and associated parties possess more than 28% of the corporation's equity, whereas Coinone founder Cha Myung-hoon maintains a controlling position of 53% from the platform.
Should it be adopted, the shareholder restriction would probably compel reorganization at several of the nation's most prominent platforms and might impact their capability to draw in or maintain strategic equity holders.
Stablecoin funding mandate established at $3.7 million
Legislative representatives indicated that the recommendation continues to be under negotiation. As stated in reporting by the Maeil Business Newspaper, the governing Democratic Party intends to present the Digital Asset Basic Act prior to the Lunar New Year celebration on Feb. 17.
Nevertheless, delicate matters, encompassing the equity holder restrictions and the central banking institution's function, continue to be under concluding coordination.
The legislation had previously encountered earlier postponements due to disputes regarding stablecoin provider supervision issues.
Maeil disclosed that legislative representatives reached consensus on additional components of the legislation, which includes establishing a baseline funding mandate of 5 billion won ($3.7 million) for stablecoin providers, yet recognized that shareholder restrictions remain among the most disputed stipulations.
The legislation would continue to require clearance through committee examination and a National Assembly ballot prior to transforming into enforceable law.