A former Constitutional Court justice has warned that South Korea's proposed ownership caps on virtual asset exchanges contain "strong unconstitutional elements" that threaten fundamental rights. Former Justice Lee Young-jin presented his analysis at a legal seminar hosted by the Korean Constitutional Law Association, arguing the restrictions may violate property rights and the proportionality principle. The proposed caps would limit individual and corporate holdings in exchanges like Upbit and Bithumb.
The legal challenge emerges against a backdrop of increasingly strict regulations in South Korea since 2017. Justice Lee specifically criticized the potential retroactive application of new rules, which could deprive established businesses of ownership rights. Legal experts anticipate industry groups may file constitutional complaints, prompting the Constitutional Court to examine whether the regulations serve a legitimate public interest through proportionate means.
Separately, leading exchange Bithumb announced a scheduled 10-hour system audit on March 31, temporarily suspending all deposit and withdrawal services from 8:00 a.m. to 6:00 p.m. UTC. The exchange emphasized this is a regular procedure to ensure security and compliance with South Korea's stringent regulations enforced by the Financial Services Commission (FSC). Trading activities for most pairs will continue uninterrupted during the maintenance window.
Bithumb's proactive audit aligns with global best practices and reflects the operational rigor required in one of the world's most regulated crypto environments. The exchange's advance notice aims to minimize disruption for users, who are advised to complete necessary transactions before the suspension begins.
