Digital asset exchanges voice concerns to ruling party… “Equity regulation would weaken global competitiveness”

The five largest digital asset exchanges have conveyed to the Democratic Party of Korea their concerns about the “cap on the shareholding ratio of major shareholders of exchanges” included in the Financial Services Commission’s government proposal.

According to the National Assembly on the 4th, Rep. Lee Jung-moon, who heads the Democratic Party of Korea’s Digital Asset TF (Task Force), held a meeting that day to hear the exchanges’ views. Attendees included the heads of South Korea’s five largest digital asset exchanges—Upbit, Bithumb, Coinone, Korbit and Gopax—as well as Kim Jae-jin, vice chair of DAXA (Digital Asset eXchange Alliance·DAXA), the consultative body of digital asset exchanges.

According to officials, the industry said at the meeting, “There are concerns that (equity regulation) could weaken the global competitiveness of domestic exchanges,” adding that “if excessive regulation is applied only in Korea in a borderless market, it could put them at a disadvantage in competing with overseas firms.” They were also said to have emphasized that “if shareholding ratios are capped, it could recreate a situation in which global platforms encroach on the Korean market, as in the Netflix case.”

After receiving the industry’s views, Rep. Lee plans to discuss the matter with TF lawmakers and the party’s policy committee. An aide in Lee’s office said, “There will likely be at least one opportunity to convey what was discussed that day to the policy committee,” adding, “However, rather than predetermining the policy direction, it will be shared as reference input during the coordination process.”

Meanwhile, separate from the industry’s concerns, the party’s policy committee is leaning toward the government proposal specifically on the cap on major shareholders’ ownership in exchanges, raising expectations of a clash of views between the TF and the policy committee. The FSC is pushing a plan to limit major shareholders’ ownership in digital asset exchanges to 15–20%, in line with the level applied to alternative trading systems (ATS).

In this regard, an aide in Lee’s office explained, “Within the TF, opinions opposing a cap on major shareholders’ ownership in exchanges are dominant, but the final bill will go through a process in which the policy committee coordinates the ruling party’s proposal and the government proposal,” adding, “The future direction of the basic act depends on the policy committee.” The aide added, “The TF is focusing on its role of conveying the industry’s concerns and sharing opinions.”

Jinwook, Bloomingbit reporter wook9629@bloomingbit.io