Korea Digital Asset Exchange Association: The Korean government's proposed cap on exchange shareholding ratios will hinder industry development

According to Odaily, the Korea Digital Asset Exchange Association (DAXA) has issued a statement strongly opposing the government's proposed shareholding restrictions. The Financial Services Commission (FSC) of South Korea previously suggested limiting the shareholding ratio of major shareholders in cryptocurrency exchanges to between 15% and 20% in order to address governance risks arising from ownership concentration. DAXA stated that such restrictions 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 this emerging sector.

DAXA further pointed out that, since digital assets circulate globally without restriction, if domestic exchange investment cannot be sustained, it will lead to a loss of international competitiveness and prompt holders to move to overseas platforms. In addition, artificially dispersing ownership would weaken the ultimate responsibility of major shareholders for the custody and management of user assets, thereby harming user protection. The proposed restriction is one of the review measures under the "Basic Act on Digital Assets," and related legislation is expected to be completed in the first quarter of this year.