South Korea’s largest digital asset exchanges have opposed the government’s plan to limit major shareholder stakes, calling it disruptive, unnecessary, and damaging to market development, according to a statement issued by their representative alliance.
The Digital Asset Exchange Alliance (DAXA) released a joint statement pushing back against the Financial Services Commission’s (FSC) proposed 15%–20% ownership cap. The group warned that such limitations would disrupt the current exchange ecosystem and harm investor confidence in the country’s digital asset sector.
DAXA, which includes Upbit, Bithumb, Korbit, Coinone, and Gopax, stated that imposing caps on ownership would undermine private business operations. The alliance believes the proposed cap could “impede the growth” of the domestic crypto market and limit the competitiveness of local firms.
The FSC introduced the proposal earlier this month as part of new governance measures being drafted under the upcoming Digital Asset Basic Act. The legislation is expected to finalize within the first quarter of 2026, forming part of South Korea’s second major regulatory framework for digital assets.
DAXA argued that artificially changing ownership structures would weaken accountability and disrupt investor protections across the crypto industry. “Major shareholders carry final responsibility for user assets,” the group said, warning that forced stake reductions could remove clear accountability.
The alliance also expressed concerns that such a cap could trigger capital flight and shift user trust to offshore exchanges. Exchanges noted that crypto markets differ from traditional finance and operate without borders, unlike securities.
They stressed that local investors and developers need a supportive environment, especially as South Korea prepares to expand its digital economy.
The proposal follows recent ownership changes among key exchanges, which have sparked debate about industry concentration. Upbit is set to merge with Naver Financial, while Mirae Asset is in talks to acquire Korbit.
DAXA requested that authorities reconsider the plan and focus on supporting a transparent, globally aligned regulatory approach.
Exchanges believe policies should balance investor safety with innovation and market growth rather than limit company structure. They emphasized the need to maintain consistency and predictability for operators and shareholders.
The Digital Asset Basic Act is also expected to introduce new rules for won-pegged stablecoins and spot crypto ETFs. These upcoming regulations will shape South Korea’s next phase of crypto oversight starting this year.
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