Photo = Mirae Asset Securities

 

 

[Alpha Biz= Paul Lee] South Korea is considering introducing a shareholding cap for cryptocurrency exchanges, a move that could affect Mirae Asset Consulting’s planned acquisition of Korbit, industry sources said.

According to the industry on March 11, the Democratic Party’s Digital Asset Task Force and financial authorities are discussing a plan to limit major shareholders’ stakes in crypto exchanges to 20%, while allowing an exceptional ceiling of up to 34% when the major shareholder is a corporate entity.

If the rule is enacted, Mirae Asset Consulting’s acquisition structure for Korbit may require adjustment. Last month, the firm agreed to acquire 92.06% of Korbit for about 133.5 billion won, including 60.5% from NXC and 31.5% from SK Planet.

Under the proposed rules, however, the company could only retain up to 34%, meaning it would need to dispose of more than half of the acquired stake.

The deal also faces regulatory hurdles. Mirae Asset Consulting is currently undergoing financial authorities’ review for a change in Korbit’s largest shareholder, and the Fair Trade Commission is also expected to review potential changes in affiliate relationships.

The review timeline could become more uncertain as lawmakers continue discussions on second-stage digital asset legislation, which includes the proposed ownership limits.

Additional uncertainty comes from amendments to the Act on Reporting and Use of Certain Financial Transaction Information, which will introduce major shareholder qualification screening for virtual asset service providers starting in August.

Still, industry observers say it is too early to conclude that the acquisition will collapse, noting that the legislation could take time to pass and may include a three-year grace period before enforcement.

 

 

 

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