DAXA Warns Against Proposed Caps on Crypto Exchange Ownership

Reading Time: < 1 minute

A major South Korean digital asset alliance has criticized the government’s consideration of imposing ownership limits on cryptocurrency exchanges. The Digital Asset Exchange Alliance (DAXA) released a statement opposing the measure on Tuesday.

DAXA’s statement warned that capping shareholder stakes would severely hinder the growth of South Korea’s digital asset industry. It contended that forcing changes to private companies’ ownership structures would undermine the emerging market.

The alliance represents the five premier crypto exchanges in South Korea: Upbit, Bithumb, Korbit, Coinone, and Gopax. Its response follows reports that the Financial Services Commission is reviewing a cap of 15% to 20% on major shareholdings.

The proposed cap is intended to address governance concerns but has sparked controversy due to its potential application to exchanges with existing ownership frameworks.

Highlighting the global nature of digital assets, DAXA cautioned that the policy could drive users abroad. The statement noted that if domestic investment falters, it risks a loss of competitiveness and user migration to foreign platforms.