South Korean FSC to meet with crypto exchanges on new legislation

South Korea's Financial Services Commission (FSC) and digital asset exchanges are scheduled to meet today for final discussions on the proposed Digital Asset Basic Act, Edaily reported. The meeting is expected to address follow-up measures to the recent Bithumb incident, with a key focus on resolving regulations concerning ownership stakes in virtual asset exchanges. An FSC official stated that the session will serve to explain and gather feedback on proposed rules, including a 15-20% shareholding limit for major shareholders. The official added that the legislative process for exchanges will be expedited following the Bithumb situation. The FSC plans to incorporate several key provisions into the act: - The formation of bank-led consortiums, with banks holding a majority stake of 50% plus one share. - A 15-20% shareholding limit for major shareholders of digital asset exchanges. - Mandatory internal control standards comparable to those for traditional financial companies. - Regular audits of virtual asset holdings by external organizations. - A strict liability rule holding exchanges responsible for user damages from system failures, regardless of fault.