South Korea Eases Crypto Shareholder Rules for Minor Infractions
The South Korean Financial Services Commission (FSC) has announced plans to introduce exceptions to disqualification criteria for major shareholders of virtual asset service providers (VASPs), specifically for minor legal violations or those arising under joint penal provisions.
This move is in response to a recommendation from the presidential Regulatory Rationalization Committee to ease major shareholder eligibility reviews. The new exceptions will mirror practices already established under the Capital Markets Act and the Online Investment-Linked Finance Act, creating a more consistent regulatory framework across financial sectors.
The change comes as a revised enforcement decree of the Act on Reporting and Using Specified Financial Transaction Information is scheduled to take effect on August 20. This revision significantly tightens screening standards for major shareholders of VASPs, potentially disqualifying individuals with even minor infractions.