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South Korean academics question restrictions on major shareholders' stakes in cryptocurrency exchanges: They may be unconstitutional and inconsistent with international practices
Svmuu News: In response to South Korean financial authorities’ proposal to limit the shareholding ratio of major shareholders in virtual asset exchanges to between 15% and 20%, several scholars expressed caution at a seminar titled “Directions for Institutionalizing Stablecoin Issuance and Trading Infrastructure” held on January 16.Moon Cheol-woo, a professor at the School of Business Administration at Sungkyunkwan University, pointed out that mandatorily reducing major shareholders’ equity stakes could raise issues regarding the protection of property rights and carry the risk of unconstitutionality.He also noted that, when comparing the equity structures of Binance and Coinbase, it is not uncommon globally for founders to maintain a high stake, and such restrictions may run counter to the international trend of emphasizing responsible management. Additionally, Kim Yun-kyung, a professor at Incheon National University, argued that directly intervening in equity structures through proportional limits is too radical and could weaken the industry’s drive for innovation and development.Several participating experts suggested that regulators could guide the diversification of shareholding and promote compliant development by strengthening due diligence on major shareholders and improving IPO-related systems, rather than implementing mandatory divestiture arrangements. (News1)
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