The DAXA, composed of the five major cryptocurrency exchanges in South Korea, opposes the government's proposed shareholding limit

According to The Block, the Korea Digital Asset Exchange Alliance (DAXA) issued a statement strongly opposing the government's consideration of setting a cap on the shareholding ratio of major shareholders in digital asset exchanges.

On Tuesday, DAXA warned in a statement that the proposed restrictions could "severely hinder" the development of the country's digital asset industry and market, and any attempt to artificially alter the equity structure of private enterprises would undermine the foundation of the emerging industry. DAXA is a self-regulatory organization representing the five major cryptocurrency exchanges in Korea—Upbit, Bithumb, Korbit, Coinone, and Gopax.

Earlier this month, the Financial Services Commission of Korea proposed to limit the shareholding ratio of major shareholders in cryptocurrency exchanges to between 15% and 20% to address potential governance risks arising from concentrated ownership. The proposal has sparked controversy as it could apply to existing companies with established equity structures.