South Korea's Digital Asset Exchange Association: Government's Proposed Cap on Exchange Shareholding Ratios Will Hinder Industry Development

Odaily News The Digital Asset Exchange Association (DAXA) of South Korea has issued a statement strongly opposing the government's proposed shareholding restrictions. The Financial Services Commission (FSC) previously suggested capping the shareholding ratio of major shareholders in cryptocurrency exchanges between 15% and 20% to address governance risks arising from concentrated ownership. DAXA stated that this restriction would severely hinder the development of the country's digital asset industry, and artificially altering the ownership structure of private companies would undermine the foundation of emerging industries.

DAXA further pointed out that as digital assets circulate globally without restrictions, if domestic exchange investments cannot be sustained, it will lead to a loss of international competitiveness and prompt holders to migrate to overseas platforms. Additionally, artificially dispersing ownership would dilute the ultimate responsibility of major shareholders for the custody and management of user assets, harming user protection. This proposed restriction is one of the deliberative measures under the "Digital Asset Basic Act," and related legislation is expected to be completed in the first quarter of this year.