South Korea Eases Shareholder Rules for Crypto Firms Amid Naver-Dunamu Deal

A South Korean presidential regulatory reform panel has made a significant recommendation to ease rules on major shareholder eligibility for virtual asset service providers.

This move could pave the way for Naver Corporation's planned acquisition of Dunamu, the operator of cryptocurrency exchange Upbit, which was worth hundreds of millions of dollars.

The original amendment would have automatically disqualified Naver from being a major shareholder due to a first-instance ruling for violating the Fair Trade Act. However, the panel stated that this was excessive and urged the Financial Services Commission (FSC) to prepare exception rules for a more nuanced review process.

This recommendation signals a potential shift in South Korea's approach to regulating the cryptocurrency industry, balancing investor protection with the need to foster innovation and business growth.