South Korea Draft Law Targets 15 To 20 % Shareholder Cap.
South Korea is preparing to submit its Digital Asset Basic Act this month.
The draft law proposes a cap of 15 to 20 percent on the stake a single shareholder can hold in a cryptocurrency exchange.
The Financial Services Commission says the goal is to reduce excessive control by a small number of founders and major shareholders. Exchanges are now being treated as core financial infrastructure, similar to alternative trading systems in the stock market.
The impact would be large:
Upbit chairman holds around 25.52 percent and would need to sell 5 to 10 percent.
Bithumb Holdings owns around 73.56 percent and would need to sell more than half its stake.
Coinone chairman holds around 53.44 percent.
Binance owns around 67.45 percent of GOPAX.
The draft also proposes a 1 to 2 year transition period for existing exchanges. Regulators are also considering limiting voting rights instead of ownership, due to concerns about property rights.
The law would also change exchange registration to a full licensing system. Stablecoin issuers are expected to be bank centered consortiums. The draft also includes no fault liability for losses caused by hacking or system failures.
At the same time, South Korea is planning to delay its crypto income tax by two years, originally scheduled for next year.
This law could reshape the entire Korean crypto market. If it passes, founders will lose control, banks will gain power, and exchanges will look more like traditional financial institutions.
The question is simple. Will this protect users, or will it push innovation out of Korea.
What do you think. Is a 15 to 20 percent cap fair or too much government control.
#SouthKoreaDraftLawTargets15To20%ShareholderCap #SouthKorea #CryptoRegulation #BinanceSquare
#SouthKoreaDraftLawTargets15To20%ShareholderCap
South Korea is preparing to submit its Digital Asset Basic Act this month.
The draft law proposes a cap of 15 to 20 percent on the stake a single shareholder can hold in a cryptocurrency exchange.
The Financial Services Commission says the goal is to reduce excessive control by a small number of founders and major shareholders. Exchanges are now being treated as core financial infrastructure, similar to alternative trading systems in the stock market.
The impact would be large:
Upbit chairman holds around 25.52 percent and would need to sell 5 to 10 percent.
Bithumb Holdings owns around 73.56 percent and would need to sell more than half its stake.
Coinone chairman holds around 53.44 percent.
Binance owns around 67.45 percent of GOPAX.
The draft also proposes a 1 to 2 year transition period for existing exchanges. Regulators are also considering limiting voting rights instead of ownership, due to concerns about property rights.
The law would also change exchange registration to a full licensing system. Stablecoin issuers are expected to be bank centered consortiums. The draft also includes no fault liability for losses caused by hacking or system failures.
At the same time, South Korea is planning to delay its crypto income tax by two years, originally scheduled for next year.
This law could reshape the entire Korean crypto market. If it passes, founders will lose control, banks will gain power, and exchanges will look more like traditional financial institutions.
The question is simple. Will this protect users, or will it push innovation out of Korea.
What do you think. Is a 15 to 20 percent cap fair or too much government control.
#SouthKoreaDraftLawTargets15To20%ShareholderCap #SouthKorea #CryptoRegulation #BinanceSquare
#SouthKoreaDraftLawTargets15To20%ShareholderCap