The DAXA, composed of the five major cryptocurrency exchanges in South Korea, opposes the government’s proposed shareholding limit. The Korea Digital Asset Exchange Alliance (DAXA) issued a statement strongly opposing the government’s consideration of setting a cap on the shareholding ratio of major shareholders in digital asset exchanges. DAXA warned in a statement that the proposed restrictions could ‘severely hinder’ the development of the country’s digital asset industry and any attempt to artificially alter the equity structure of private enterprises would undermine the foundation of the emerging industry. Earlier this month, the Financial Services Commission of Korea proposed to limit the shareholding ratio of major shareholders in cryptocurrency exchanges to between 15% and 20% to address potential governance risks arising from concentrated ownership.
The Korea Digital Asset Exchange Alliance (DAXA), which represents Upbit, Bithumb, Korbit, Coinone, and Gopax, has publicly rejected the government’s plan to cap shareholding in digital asset exchanges. The Financial Services Commission proposed a cap of 15% to 20% on the ownership stakes of major shareholders to address governance risks from concentrated ownership. DAXA warned that such limits could hinder the development of Korea’s digital asset industry.
DAXA argued that artificially altering the equity structure of private exchanges would undermine the foundation of the emerging industry and could reduce investment, competition, and innovation. The alliance emphasized that governance risk can be managed without broad ownership caps, advocating for transparent reporting and robust oversight instead.
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