South Korean crypto exchanges slam government’s proposed ownership cap
DAXA opposes the government's proposed 15-20% ownership cap for major shareholders in crypto exchanges, citing risks to industry growth and user protection.Summary
South Korea's Digital Asset Exchange Alliance (DAXA), representing the five major local crypto exchanges (Upbit, Bithumb, Korbit, Coinone, and Gopax), strongly opposes the government's reported proposal to cap major shareholder stakes in digital asset exchanges at 15% to 20%. DAXA argues that this restriction, intended to address governance risks, would significantly impede the industry's growth, undermine private company ownership structures, and potentially cause users to migrate to overseas platforms due to a loss of global competitiveness. Furthermore, the group contends that dispersing ownership would dilute the ultimate accountability major shareholders bear for user asset custody and management, harming user protection. The proposal is being considered for inclusion in the upcoming Digital Asset Basic Act, and DAXA urges reconsideration of regulations that could destabilize property rights amid efforts to develop the digital asset industry.
(Source：The Block)