DAXA, comprised of South Korea's five largest cryptocurrency exchanges, opposes the government's proposed shareholding cap.

PANews reported on January 13th that, according to The Block, the Korea Digital Asset Exchange Alliance (DAXA) issued a statement strongly opposing the government's consideration of capping the shareholding ratios of major shareholders in digital asset exchanges. On Tuesday, DAXA warned in a statement that the proposed restrictions could "seriously hinder" the development of the country's digital asset industry and market, and that any attempt to artificially alter the equity structure of private companies would shake the foundations of this emerging industry. DAXA is a self-regulatory organization representing South Korea's five largest cryptocurrency exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax.

Earlier this month, South Korea's Financial Services Commission proposed limiting the shareholding of major shareholders in cryptocurrency exchanges to between 15% and 20% to address potential governance risks arising from concentrated ownership. This proposal has sparked controversy because it could potentially apply to existing companies with established shareholding structures.