In a significant move to regulate the cryptocurrency sector, South Korean authorities have agreed to impose a 20% ownership limit for major shareholders in virtual asset exchanges. This decision, reached after extensive negotiations, aims to curtail the influence of founders over the largest exchanges in the country. According to the results published in the material, this measure is expected to enhance transparency and stability within the market.
Proposed Grace Period for Compliance
The Financial Services Commission (FSC) and the Democratic Party's digital asset task force have proposed a three-year grace period for compliance. This allows major exchanges like Upbit and Bithumb to gradually adjust their ownership stakes to meet the new regulations. Smaller exchanges will benefit from an even longer timeframe to comply with the ownership ceiling.
Uncertain Future of Regulation
Despite the agreement, the final passage of this regulation remains uncertain, as some lawmakers have expressed opposition. The outcome of this legislative process will be crucial in shaping the future landscape of cryptocurrency trading in South Korea.
As South Korea implements new regulations in the cryptocurrency sector, the country faces a troubling rise in criminal activities linked to digital currencies. For more details, see the report on recent criminal complaints related to cryptocurrency here.
