South Korea to shift crypto exchange shareholder rules to new digital asset act

South Korea’s Financial Services Commission (FSC) is pursuing a plan to transfer the eligibility review regulations for major shareholders of cryptocurrency exchanges from the Act on Reporting and Using Specified Financial Transaction Information to a new Digital Asset Basic Act, iNews24 reported. Currently, virtual asset service providers are subject to these shareholder reviews under the existing financial information act. An amendment to this act, set to take effect on Aug. 20, will expand the scope of these reviews from CEOs and executives to include the largest shareholders and others with significant influence over management. The outlet explained that with the establishment of the Digital Asset Basic Act, the move is intended to place the regulations within a dedicated industry-specific legal framework, thereby improving legal consistency.