South Korea to submit digital asset bill in early September with 20% ownership cap

South Korea’s Financial Services Commission plans to submit a government proposal for the Basic Digital Asset Act in early September through legislation sponsored by Rep. Yoo Dong-soo of the ruling Democratic Party, who chairs the National Assembly’s Political Affairs Committee, The Herald Business reported. The proposal is understood to be taking shape around applying the same major shareholder ownership cap to all virtual asset exchange operators regardless of exchange size or market share. A 20% ceiling is being discussed as the base proposal for the cap, which has emerged as the biggest sticking point. Authorities aim to bring traditional financial companies such as banks into exchange governance through the measure.