South Korea Panel Recommends Easing Crypto Firm Shareholder Rules

A South Korean regulatory panel has recommended easing shareholder rules for virtual asset service providers, paving the way for Naver Corporation's acquisition of Dunamu, the operator of cryptocurrency exchange Upbit.

The recommendation addresses a critical issue that threatened to derail the deal. Under the originally proposed amendment, Naver's acquisition could have fallen through after the company received a first-instance ruling for violating the Fair Trade Act.

The panel urged the FSC to prepare exception rules allowing for a more nuanced review process, which signals a potential shift in South Korea's approach to regulating the cryptocurrency industry.