Lawmaker Kang Jun-hyun Says Crypto Exchange Ownership Cap Can Be Revisited Later; Virtual Asset Tax Needs Social Consensus
Summary
- Rep. Kang Jun-hyun said ownership caps on major shareholders of cryptocurrency exchanges should be discussed later, separately from the Digital Asset Basic Act.
- He said the government's review of a 20% ownership cap for major shareholders of crypto exchanges requires industry input and open public discussion.
- He said taxation of virtual assets should follow the principle of taxing income, but requires sufficient social consensus and prior communication in light of concerns about a market slowdown.
Forecast Trend Report by Period
Rep. Kang Jun-hyun of the Democratic Party of Korea said limits on major shareholders' stakes in virtual asset, or cryptocurrency, exchanges should be discussed separately from the proposed Digital Asset Basic Act and revisited later. On virtual asset taxation, he said the principle of taxing income should be upheld, but only with sufficient social consensus.
Maeil Business Newspaper reported on September 15 that Kang, in a recent interview, said if legislation is being held up over the ownership cap alone, lawmakers should enact the basic law first and take up the major shareholder stake limit separately later, whether at 20% or 30%.
The government is currently reviewing a plan to cap major shareholders' stakes in crypto exchanges at 20% in principle. Kang said the proposal had been presented without sufficient public discussion and that industry views should be gathered through an open debate.
On the issuance of won-denominated stablecoins, he said discussions were focused on a consortium structure in which banks would hold a majority stake, while still allowing technology companies to become the largest shareholder. Details such as distribution and payments would be delegated to lower-level regulations, including an enforcement decree.
On crypto taxation, Kang said the principle is that taxes should be paid when there is income, whether from stocks or coins. He added that sufficient social consensus and prior communication would be needed before implementation, given concerns about a potential market slowdown.
