Industry Group Warns: Regulatory Overreach Could Stifle Crypto Innovation
The Digital Asset Exchange Alliance (DAXA) of South Korea has issued a firm statement opposing proposed regulations that would cap major shareholder ownership in cryptocurrency exchanges. The move, if enacted, could reshape the country’s digital finance landscape and dampen market confidence.
Earlier this month, the Financial Services Commission floated a rule limiting controlling stakes to between 15% and 20%, citing governance risks from concentrated ownership. But DAXA argues such top-down restructuring threatens the autonomy of private enterprises and could discourage long-term investment.
Why the Pushback Against Ownership Caps?
- Forced equity changes undermine market-driven corporate governance
- Established platforms may face costly structural overhauls
- Reduced shareholder influence could slow strategic decision-making
- Innovation may suffer as venture capital becomes harder to secure
DAXA stresses that the digital asset sector is still evolving and needs adaptive regulation, not rigid frameworks borrowed from traditional finance. Heavy-handed rules could push South Korea to the sidelines in the global race for blockchain leadership.
The alliance is now engaging with policymakers to advocate for a more balanced, forward-looking approach.