South Korea's Crypto Exchange Ownership Cap Faces Constitutional Scrutiny

South Korea is at a crossroads regarding its cryptocurrency regulations. A former Constitutional Court justice has weighed in on the proposed ownership restrictions, warning that they may violate fundamental rights protections.

The country's approach to regulating virtual assets has been increasingly strict since 2017, with a focus on anti-money laundering measures and investor protection. However, recent legislative proposals have targeted exchange ownership structures directly.

Justice Lee Young-jin argues that the proposed ownership caps could deprive well-managed private companies of their ownership rights and limit individual freedoms without sufficient justification. He emphasizes the importance of proportionality in regulatory interventions and questions whether retroactive application of new rules is constitutional.