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South Korean Digital Asset Exchange Association: Proposed Ownership Limit Will Hinder Industry Development
Summary: According to reports, the South Korean Digital Asset Exchange Association (DAXA) strongly opposes the government's proposed ownership limit. The Financial Services Commission (FSC) of South Korea previously suggested limiting major shareholders of cryptocurrency exchanges to between 15% and 20% to address governance risks from ownership concentration. DAXA stated that this restriction will severely hinder the ...
According to reports, the South Korean Digital Asset Exchange Association (DAXA) strongly opposes the government's proposed ownership limit. The Financial Services Commission (FSC) of South Korea previously suggested limiting major shareholders of cryptocurrency exchanges to between 15% and 20% to address governance risks from ownership concentration. DAXA stated that this restriction will severely hinder the development of the country's digital asset industry, as artificially altering the ownership structure of private companies will disrupt the foundation of emerging industries.
DAXA further pointed out that since digital assets circulate globally without restrictions, the inability to sustain domestic exchange investments will lead to loss of international competitiveness and drive holders to overseas platforms. Additionally, artificially dispersing ownership will weaken major shareholders' ultimate responsibility for user asset custody and management, harming user protection. This proposed limit is one of the deliberation measures under the Digital Assets Basic Law, with related legislation expected to be completed in the first quarter of this year.
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Link: South Korean Digital Asset Exchange Association: Proposed Ownership Limit Will Hinder Industry Development [Copy]
