South Korea Mulls Digital Asset Act with Potential Major Shareholder Ownership Cap

The Digital Asset Basic Act is gaining momentum in South Korea's government and ruling party, posing a potential risk to Naver Financial's plan to acquire Dunamu. The legislation aims to establish a comprehensive framework for the digital asset industry, covering market entry, business practices, internal controls, security standards, and liability for incidents.

The proposed bill includes a provision that could limit major shareholders' stakes in cryptocurrency exchanges to 20%. This would directly impact Naver Financial's planned acquisition of Dunamu, which would make Dunamu a wholly-owned subsidiary with a 100% stake. The legislation would also affect Mirae Asset Group's recent acquisition of Korbit and Binance's ownership structure in GOPAX.

Regulators are considering different options for exchange governance, including capping major shareholders' stakes or restricting voting rights attached to shares exceeding a specified threshold. The Financial Services Commission (FSC) has stated that no decision has been made on a major shareholder ownership cap, but the Digital Asset Basic Act could still pose a significant risk to Naver Financial's plans.