Hassan Maishera
TL;DR
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Kiwoom Securities is reportedly in talks to acquire a stake in South Korean crypto exchange Bithumb.
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The investment would reportedly be made through a third-party allocation of newly issued Bithumb shares.
South Korean financial services firm Kiwoom Securities is reportedly negotiating to acquire a stake in Bithumb, the country's second-largest cryptocurrency exchange, as institutional interest in the digital asset sector continues to grow.
According to the local media outlet ChosunBiz, the companies are discussing a deal in which Bithumb would issue new shares through a third-party allocation, with Kiwoom purchasing the newly issued stock.
The size of the investment and the percentage stake remain under negotiation.
Bithumb Says No Final Decision Has Been Made
Responding to inquiries, a Bithumb spokesperson said the company has not finalized or officially reviewed any specific investment agreement.
Instead, Bithumb noted that it is currently exploring potential partnerships with several financial institutions and corporate partners.
Kiwoom Securities has not publicly commented on the reported negotiations. If completed, the transaction would add to a growing list of South Korean financial institutions investing in cryptocurrency businesses.
Last month, Hana Bank, one of South Korea's largest commercial banks, announced plans to acquire a $670 million stake in Dunamu, the parent company of the country's largest cryptocurrency exchange, Upbit.
Separately, local reports indicated that three Samsung subsidiaries would collectively purchase approximately $407.7 million worth of Dunamu shares, giving them a combined ownership stake of around 4%.
The trend reflects increasing institutional confidence in South Korea's digital asset industry despite ongoing regulatory reforms.
International cryptocurrency companies have also stepped up investments in the South Korean market.
Earlier this year, OKX Ventures, the investment arm of the global crypto exchange OKX, announced plans to acquire a 19.6% stake in cryptocurrency exchange Coinone.
Meanwhile, Binance completed its long-awaited acquisition of Gopax, overcoming years of regulatory hurdles before finalizing the transaction.
These investments underscore South Korea's growing importance as one of Asia's largest cryptocurrency markets.
New Crypto Regulations Could Shape Ownership Rules
South Korean lawmakers are continuing work on the proposed Digital Asset Basic Act, a comprehensive legal framework designed to regulate the country's cryptocurrency industry.
Although legislative progress has slowed during the first half of the year, policymakers are expected to resume discussions and advance the bill later this year.
Among the proposals under consideration is a cap on ownership in cryptocurrency exchanges. Current discussions suggest a standard maximum shareholding of 20%, with exceptions allowing stakes of up to 34% under certain conditions.
The final legislation could significantly influence future investments by financial institutions and strategic partners.
Bithumb Continues IPO Preparations
Alongside exploring new strategic investments, Bithumb is moving forward with plans to become a publicly traded company.
The exchange has signed an IPO advisory agreement with Samjong KPMG that runs through the end of 2027.
Earlier this year, Chief Financial Officer Jeong Sang-gyun said the company is targeting 2028 for its initial public offering, positioning the exchange for its next stage of growth.
