South Korea’s Crypto Capers: A Law That Might Just Cap Your Dreams! 🚫💰

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Key Highlights

  • In a plot twist worthy of a soap opera, South Korea’s “Phase Two Virtual Asset Law” is set to toss a cap on the ownership hats of cryptocurrency exchanges.
  • Word on the street suggests that major shareholders will be limited to hoarding only 15% to 20% of their digital treasure. Greed, it seems, will have to take a back seat!
  • What’s next? Major crypto exchanges getting the same consumer protection as that dusty old bank down the road! Who would’ve thought? 🤔

So, South Korea is gearing up for its grand unveiling of the “Phase Two Virtual Asset Law,” which aims to legalize stablecoins. Yes, because who doesn’t want their coins to be stable? It also plans to establish some rather serious issuance requirements.

According to an especially chatty report, the Financial Services Commission (FSC) has decided that crypto exchanges with over 11 million users are practically a national treasure, classifying them as “core infrastructure.” Because when you think of infrastructure, you naturally think of virtual assets, right?

Regulation for Major Shareholders: Because Why Not?

The FSC has noticed that a tiny band of founders and major shareholders currently hold all the power, like some sort of financial Avengers. They highlighted concerns that the vast fortunes from trading fees are being amassed by just a few lucky ducks, and they’re calling for a change in the ownership game.

To shake things up, regulators propose a major shareholder qualification review system reminiscent of the one used for Alternative Trading Systems (ATS). And yes, they’re suggesting a lovely little limit of 15% to 20% on those greedy shareholders. Sharing is caring, after all!

The Ripple Effect on Crypto Exchanges

If the National Assembly gives the thumbs up to these suggestions, it could lead to some very uncomfortable conversations at major exchanges. Take Upbit’s Dunamu, for example: Chairman Song Chi-hyung might just find himself tossing 10% of his shares into the wind. How generous!

Then there’s Coinone, where Chairman Cha Myung-hoon currently clings to a hefty 54% stake. He may soon find it necessary to part with more than 34%, perhaps at a garage sale? 🏷️

Bithumb is also feeling the heat, as a whopping 73% of its ownership belongs to its holding company. Should these new rules pass, there may be a yard sale of epic proportions in the works, raising eyebrows about management control.

Strict Exchange Rules: Buckle Up! 🎢

This proposal comes as the South Korean government considers making crypto exchanges financially liable-because nothing says trust like a little liability! On December 8, 2025, the FSC announced plans for no-fault compensation rules for Virtual Asset Service Providers. What a wild ride! 🎠

The proposed law is poised to provide major crypto exchanges with consumer protection regulations akin to those of traditional financial institutions. Because if you can’t beat them, you may as well join them in the world of red tape!

A Shift Toward Oversight: The Government Strikes Back!

With the proposed Phase Two Virtual Asset Law, South Korea signals a monumental shift toward stricter oversight. By capping ownership of major shareholders and aligning exchanges with the traditional finance world, the government aims to tame the wild west of cryptocurrency. Yeehaw! 🤠

If these measures are implemented, we could witness a dramatic reshaping of ownership and management structures across domestic exchanges while simultaneously promoting the noble cause of investor protection.

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2025-12-30 21:37