The government of South Korea is in the process of finalizing the crypto rules to oversee industry expansion there. As per fresh reports, South Korea’s Financial Services Commission (FSC) is considering levying a cap on the maximum ownership stakes for major shareholders in crypto exchanges.
Lee Eog-weon, the chairman of the FSC has reportedly proposed the measure to curb the misuse of crypto platforms for money laundering. Lee, while extending the proposal said, if ownership in crypto exchanges is not controlled, threats to market integrity would become concern-worthy.
“Securities exchanges and alternative trading systems are already subject to ownership limits, making it reasonable to apply similar standards to virtual asset platforms,” Korea Times quoted Lee as saying.
With the new guidelines under formation, South Korea is looking to integrate crypto and blockchain into the existing financial ecosystem.
The proposal, however, is expected to see a pushback from existing crypto exchanges operating in South Korea.
Coinone founder Cha Myung-hoon controls about 53 percent of the exchange. Song Chi-hyung and affliliates, meanwhile, command over 28 percent of the Upbit exchange.
So, in case the proposed rule does get approved, the shareholding situation for these exchanges and others will have to be reassessed.
The regulators are also factoring in the fact that similar laws are not common in other parts of the world — which could impact South Korea’s standing in terms of being friendly with the sector.
For now, consultations on the proposed laws are continuing among members of the FSC and the National Assembly.