Financial authorities are pursuing a plan to comprehensively overhaul the governance structures of Korea's four major virtual asset exchanges. The so-called "Phase 2 Virtual Asset Act," which outlines stablecoin issuance requirements and market legalization, includes strict regulations such as limiting major shareholder ownership, which is expected to have significant repercussions across the industry.
According to a KBS report on the 30th, the Financial Services Commission is considering raising the ownership and control structure of virtual asset exchanges to the level of alternative trading systems (ATS) under the Capital Markets Act. The plan is to institutionalize a system for reviewing the eligibility of major shareholders, citing the problematic nature of a small number of founders and major shareholders wielding excessive influence over the overall operation of exchanges.
The key issue is the standard for dispersing ownership by major shareholders. The Financial Services Commission has proposed limiting the maximum stake held by any single major shareholder to 15-20%. If the standard is finalized, Dunamu, the operator of Upbit, Korea's largest exchange, is likely to be directly impacted.
Currently, Chairman Song Chi-hyung of Dunamu is known to hold around 25% of the company's shares. If the government's plan is implemented as is, Chairman Song could be forced to sell up to 10% of his shares on the market. This is a matter that goes beyond a simple shareholding adjustment and could impact the company's management stability and long-term strategy.
In particular, the fact that Dunamu is pursuing a de facto merger with Naver Financial through a comprehensive stock swap is also considered a variable. If regulations restricting major shareholders' stakes become a reality at a time when shareholding structures are sensitive, there are concerns that a reexamination of the entire transaction structure and schedule may be inevitable.
The Financial Services Commission (FSC) maintains that this regulation is a necessary step toward restoring trust in the virtual asset market and ensuring its institutional integration. However, the industry will inevitably debate whether applying governance regulations on a traditional financial level to exchanges adequately reflects the characteristics of an innovative industry.
As the second phase of the virtual asset legislation enters full-scale legislative process, the domestic exchange industry is also facing a major turning point.
