South Korea's FSC Responds to Controversy Over Virtual Asset Exchange Stake Limits: Strengthening Regulatory Responsibility, Not Targeting Specific Firms

PANews, October 10 - According to Yonhap News, Lee Bok-hyun, Chairman of South Korea's Financial Services Commission (FSC), stated that the provision in the proposed Digital Asset Basic Act to restrict major shareholder stakes in virtual asset exchanges was not directed by any specific individual, but was introduced considering the higher public responsibility exchanges must assume once institutionalized.

During a parliamentary audit by the National Assembly's Political Affairs Committee on the FSC, Lee said that South Korean virtual asset exchanges currently operate under a renewal reporting system every three years, but after the Digital Asset Basic Act takes effect, exchanges will transition to an institutionalized operational model requiring licensing. He noted that exchanges possess infrastructure characteristics and therefore need public accountability and responsibility commensurate with their status.

Earlier, some lawmakers questioned whether the stake limit provision, which was absent from the FSC's original plan, was influenced by external factors, and pointed out that if enforced, major shareholders and potential acquirers of South Korean exchanges might be forced to sell shares worth trillions of won.

In response, Lee stated that the government is currently drafting the relevant legislation, and specific stake limit details can be further coordinated during the parliamentary review process, adding that the design will fully reflect input from all parties. He also said the government's proposal for the Digital Asset Basic Act is in final coordination and will be submitted as soon as possible, though no specific timeline was provided.