The Federation of South Korean Digital Asset Exchanges opposes the proposal to limit the shareholding ratio of exchanges

The Digital Asset Exchange Association of Korea (DAXA) has issued a statement opposing the proposed limit on the shareholding ratio of major shareholders in cryptocurrency exchanges by the Financial Services Commission (FSC) of Korea. FSC suggests limiting the shareholding ratio to between 15% and 20% to address governance risks. DAXA believes that this move will hinder the development of South Korea's digital asset industry, undermine the foundation of emerging industries, and may lead to a decline in international competitiveness and user flow to overseas platforms. In addition, decentralized ownership may weaken the responsibility of major shareholders for user asset custody and management, and harm user protection. This restriction is one of the measures for the review of the Basic Law on Digital Assets, and the relevant legislation is expected to be completed in the first quarter of this year.