Leading joint statement from Korea's top 5 exchanges: "Restricting major shareholder stakes hampers the industry... Reconsideration needed"

Source: BlockMedia Original Title: Korea’s Top 5 Digital Asset Exchanges Issue Joint Statement Opposing Government Review of Major Shareholder Restrictions Original Link: The CEOs of Korea’s top 5 digital asset exchanges have issued a joint statement publicly opposing the government’s review of restrictions on major shareholder ownership ratios. The Digital Asset Exchange Joint Council argued that such regulations could weaken responsible management and damage industry competitiveness.

The council expressed concern that the government’s consideration of limiting major shareholder ownership in digital asset exchanges to 15-20% could hinder the development of the digital asset market and industry, stating, “We have serious concerns.”

Concerns Over Weakened Responsible Management

The council stated, “Unlike securities, digital assets are traded across borders, so if domestic exchanges do not continue to invest, they could lose global competitiveness and users might migrate to overseas exchanges.”

It also argued, “Major shareholders are not just financial investors but are responsible for the final custody of user assets,” adding, “Artificially dispersing ownership shares would dilute the ultimate responsibility for safeguarding and managing user assets, only damaging the cause of user protection.”

Warning of Entrepreneurial Spirit Deterioration

The council warned, “Imposing artificial restrictions on the ownership structure of private companies that have already entered a growth phase could stifle the digital asset industry and increase uncertainty across the entire startup and venture ecosystem, leading to a decline in entrepreneurial spirit and investment.”

Furthermore, it emphasized, “The digital asset market has no borders, and Galápagos-style regulations could cause user attrition and undermine the competitiveness of domestic exchanges,” adding, “Only regulatory frameworks aligned with global standards can protect national interests.” It concluded, “As we consider the development of the digital asset industry, regulations that could shake property rights and market economic order should be reexamined.”