KFTC: Restrictions on Cryptocurrency Exchange Shares Do Not Conflict with Fair Trade Act

The Korea Fair Trade Commission (KFTC) stated that the restrictions on shares of cryptocurrency exchanges do not conflict with the Fair Trade Act. According to materials submitted to the National Assembly Legislative Research Service on the 15th, the KFTC explained that the Fair Trade Act aims to ensure the alignment of ownership and responsibility within a holding company system, and that the restrictions on shares of digital asset exchanges are regulations aimed at ensuring fairness through ownership dispersion due to the nature of the industry. Concerns were raised that if digital asset exchanges are incorporated as subsidiaries of holding companies, there could be a conflict between the Fair Trade Act and the share restrictions. Currently, during the legislative process of the Digital Asset Basic Act, discussions are underway to limit the shareholding ratio of major shareholders of exchanges to 20%, with exceptions allowing up to 34%. The KFTC proposed a plan to meet both the lower and upper limits of shareholding ratios or to restructure governance without maintaining a holding company system. The Legislative Research Service explained that it is generally difficult to view these as conflicting regulations because the regulatory purposes and application targets differ. It added that the legislative process should comprehensively consider user protection, market fairness, industry competitiveness, and investment incentives.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.