Exchanges voiced strong opposition to the government's review of a plan to cap the equity held by major shareholders of domestic virtual asset exchanges at 15% to 20%.
On the 13th, the Digital Asset eXchange Alliance (DAXA) said in a statement, "Regarding the government's review of a plan to limit an exchange's major shareholder equity ratio to 15% to 20%, we express serious concern that such regulation could hinder the development of the domestic digital asset industry and market." DAXA is a council of the five major domestic virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax).
DAXA said, "An attempt to artificially alter the ownership structure of private companies is a measure that shakes the foundation of a digital asset industry that has grown organically."
It added, "Because of the regulation the government is reviewing, domestic exchange users could shift to overseas exchanges," and "it would also dilute the major shareholder's ultimate compensation responsibility for the custody and management of user assets, undermining only the cause of user protection."
DAXA also said, "(Due to government regulation) it could increase uncertainty across the startup and venture ecosystem, leading to a contraction in entrepreneurship and investment," and "only a system design that meets global standards is the sole way to protect the national interest."
It continued, "At a time when we should be considering the development of the digital asset industry, regulations that could shake property rights protection and the market economy order should be reconsidered."