South Korea Proposes Relaxing VASP Shareholder Rules

Regulatory committee suggests exempting minor violations from ownership restrictions for virtual asset service providers, potentially reshaping M&A dynamics after a registration freeze.

Woofun AI reports that the South Korean Regulatory Rationalization Committee has proposed amending the implementation order of the Special Financial Transaction Information Act. The amendment aims to exempt minor violations from ownership stake restrictions for virtual asset service providers (VASPs). Since June 2024, no new VASP registrations have been approved in South Korea. Changes to major shareholder review criteria could directly influence exchange acquisitions, new market entries, and industry consolidation. Critics argue that current laws do not explicitly authorize such exceptions via Executive Orders, raising questions about legal legitimacy. The focus remains on balancing regulatory frameworks with investor protection rather than short-term price movements.