South Korea Eases Crypto Shareholder Rules Amid Naver-Dunamu Deal

A South Korean presidential regulatory reform panel has recommended creating exceptions in major shareholder eligibility reviews for virtual asset service providers. This move could remove a significant obstacle to Naver Corporation's planned acquisition of Dunamu, the operator of cryptocurrency exchange Upbit.

The recommendation addresses a critical issue that threatened to derail the deal. If South Korea's Financial Services Commission (FSC) had enforced its amendment as originally drafted, Naver's acquisition could have fallen through after the company received a first-instance ruling for violating the Fair Trade Act.

The panel stated it was excessive to reject filings uniformly without considering the severity of a major shareholder's legal violation or whether a dual punishment provision had been applied. The regulatory reform panel urged the FSC to prepare exception rules that would allow for a more nuanced review process, potentially setting a precedent for future acquisitions involving virtual asset service providers.