DAXA Raises Concerns That Major Shareholder Equity Limits Could Hinder Industry Development

The Digital Asset eXchange Alliance (DAXA) has expressed concerns regarding the government's proposed plan to limit the shareholding ratio of major shareholders in digital asset exchanges. DAXA argues that introducing regulations restricting major shareholders' equity to 15-20% could hinder the development of the domestic digital asset industry and market.

On January 13, DAXA stated in an official position, "Digital asset exchanges are a core infrastructure of the digital asset ecosystem, which serves approximately 11 million users," adding, "At this point in time, any attempt to artificially alter the ownership structure of private companies is a measure that shakes the very foundation of an industry that has grown organically."

The alliance particularly raised concerns about responsible management and the weakening of global competitiveness. Unlike securities, digital assets are distributed across borders. DAXA explained that if domestic exchanges fail to maintain continued investment, the resulting loss of global competitiveness could lead users to migrate to overseas exchanges.

DAXA emphasized, "Major shareholders are not merely financial investors, but are ultimately responsible for users' assets," and warned, "If equity is artificially dispersed, the ultimate compensation responsibility for the custody and management of users' assets will be diluted, undermining the very purpose of user protection."

They also pointed out potential setbacks to entrepreneurship and investment. Restricting the ownership structure of private companies that have already entered the growth stage could not only shrink the overall digital asset industry, but also increase uncertainty across the startup and venture ecosystem, leading to decreased investment.

DAXA stressed the importance of regulatory consistency as well. "Currently, the National Assembly is pursuing the enactment of the Digital Asset Basic Act, which includes the introduction of KRW stablecoins," DAXA stated, "If Galapagos-style regulations are applied to the borderless digital asset market, the competitiveness of domestic exchanges could be undermined."

Finally, DAXA asserted, "Designing systems that align with global standards is the only way to protect the national interest," and emphasized, "At a time when the development of the digital asset industry must be considered, regulations that could undermine property rights and the order of the market economy should be reconsidered."