South Korea’s Financial Services Commission (FSC) is preparing a bill to establish stricter qualifications for large shareholders and reform the governance structures of virtual asset exchanges, according to Chairman Kim Byung-hwan.
The announcement came during a comprehensive state audit by the National Assembly Political Affairs Committee on October 24.
“There is currently no legal basis for examining major shareholders under existing laws such as the Private Financial Information Act or the Virtual Asset Users Protection Act,” Chairman Kim said. Chairman Kim added that a revision of the Private Financial Information Law has been submitted to the National Assembly to address this loophole and allow for the scrutiny of major shareholders.
The issue of unmonitored large shareholders in virtual asset exchanges was raised by People Power Party lawmaker Kwon Seong-dong, who criticized the lack of supervision compared to traditional financial institutions. “Banks check the qualifications of major shareholders, but there is no such procedure for virtual assets, which is problematic,” Kwon said.
Giving the example of Bithumb, one of South Korea’s largest cryptocurrency exchanges, he stated that its management structure was greatly influenced by former Chairman Lee Jung-hoon and Initial 1 Investment Association. Kwon stated that Lee is currently on trial on charges of fraud worth 110 billion won, while Kang Jong-hyun, the de facto owner of Initial 1 Investment Association, was arrested on charges of embezzlement and stock price manipulation.
Kwon called on the FSC to act quickly to identify major shareholders, assess their ethical standing and ensure their social credibility. “Ultimately, I call on the Financial Services Commission to come forward so that we can quickly understand who the major shareholder is, whether it is ethically sound and whether its social credibility is guaranteed,” he said.
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/en-onemli-kripto-para-ulkelerinden-guney-korede-kripto-icin-yeni-yasa-gelecegi-konusuluyor/
