The Digital Asset Exchange Alliance (DAXA) has raised alarms regarding a proposed government regulation in South Korea that seeks to limit ownership stakes of major shareholders in crypto exchanges. According to the results published in the material, this move has sparked a debate about the future of the domestic digital asset industry.
DAXA's Stance on Ownership Caps
DAXA, which represents the five largest cryptocurrency exchanges in South Korea, argues that capping ownership stakes at 15-20% could stifle innovation and growth within the sector. The alliance believes that such restrictions may push traders to seek alternatives on overseas platforms, which could compromise user protection and regulatory oversight.
Call for Reconsideration by Policymakers
As the government continues to draft its regulatory framework for cryptocurrencies, DAXA is urging policymakers to reconsider the implications of these ownership limits. The alliance emphasizes the need for a balanced approach that fosters a competitive environment while ensuring the safety and security of digital asset users.
In a significant shift, the SEC has transformed its approach to cryptocurrency regulation following Gary Gensler's resignation, contrasting with the concerns raised by DAXA regarding ownership limits in South Korea. For more details, see read more.
