South Korea’s major crypto exchanges have voiced strong opposition to the government’s plan to cap major shareholder stakes in digital asset platforms at 15–20%. The Digital Asset Exchange Alliance (DAXA) representing Upbit, Bithumb, Korbit, Coinone, and Gopax, argued that such restrictions could stifle growth and weaken investor protections.
The Financial Services Commission proposed the cap to mitigate risks from concentrated ownership. However, DAXA contended that major shareholders carry ultimate responsibility for user assets, and artificially dispersing ownership would dilute accountability. The alliance also highlighted that digital assets circulate across borders, meaning overly restrictive domestic rules could reduce global competitiveness and encourage users to migrate to international platforms.
DAXA warned that imposing ownership caps on existing exchanges could create uncertainty, discouraging investment in startups and emerging crypto initiatives. The group stressed that maintaining robust private ownership structures is essential for industry stability and long-term innovation.
The proposed limits are part of the upcoming Digital Asset Basic Act, South Korea’s second comprehensive regulatory framework. The law, expected to finalize in Q1 2026, will also formalize rules for Korean won–pegged stablecoins and spot crypto ETFs. Recent mergers and acquisitions, including Upbit’s integration with Naver Financial and potential Korbit acquisition by Mirae Asset Group, underscore the evolving landscape that the government aims to regulate.
DAXA urged authorities to reconsider measures that could destabilize property rights and contradict market principles, emphasizing alignment with global regulatory standards to foster sustainable growth in South Korea’s crypto industry.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.