South Korean Academia Questions Restrictions on Major Shareholder Holdings in Crypto Exchanges: May Involve Constitutional Violations and Deviate from International Norms

Odaily News In response to the Korean financial authorities' proposal to limit the shareholding ratio of major shareholders in virtual asset exchanges to a range of 15%–20%, several scholars expressed cautious views at the "Institutionalization Direction for Stablecoin Issuance and Trading Infrastructure" seminar held on January 16. Professor Moon Cheol-woo from the Business School of Sungkyunkwan University pointed out that forcibly reducing the shareholding ratio of major shareholders may touch upon property rights protection issues and pose a risk of unconstitutionality. He also mentioned that, comparing the ownership structures of Binance and Coinbase, it is not uncommon globally for founders to maintain a high shareholding ratio. Such restrictive measures may contradict the international trend emphasizing responsible management.

Furthermore, Professor Kim Yoon-kyung from Incheon University believes that directly intervening in ownership structures through proportional restrictions is too radical and may weaken industry innovation and development momentum. Several participating experts suggested that regulators could guide shareholding dispersion and compliant development by strengthening the qualification review of major shareholders and improving IPO-related systems, rather than adopting mandatory divestment arrangements. (News1)