South Korea’s Financial Services Commission is considering a Digital Asset Framework Act provision that would generally cap major shareholders’ stakes in virtual asset businesses at 20%, with exceptions of up to 34% for operators meeting requirements such as business innovation criteria. The commission is also examining restrictions on voting rights attached to shares above the threshold. Parliamentary audit materials show the FSC has no record of internal or external legal reviews, consultations, research service contracts or related interagency consultations on the cap during the past five years. The National Assembly Research Service has warned that forcing existing shareholders to sell lawfully acquired holdings or accept voting restrictions could raise issues involving constitutional property rights, freedom of occupation and business activity, and the prohibition on retroactive legislation. The proposal has become a major issue in the government’s draft bill, which is expected to be submitted this month to Democratic Party lawmaker Yoo Dong-soo, chairman of the National Assembly’s Political Affairs Committee. The rules could also affect the share-swap deal being pursued by Naver Financial and Dunamu.