Key facts
- Kiwoom Securities is reportedly in discussions to acquire a stake in Bithumb.
- The potential acquisition involves a third-party allotment of new shares.
- South Korea's Financial Services Commission (FSC) is set to announce new regulatory reforms in July.
- Bithumb is one of South Korea's largest cryptocurrency exchanges by daily trading volume.
- Several other major South Korean financial firms have recently invested in local crypto exchanges.
Kiwoom Securities, a prominent South Korean brokerage firm, is reportedly in discussions to acquire a stake in the cryptocurrency exchange Bithumb. This potential move signifies a growing trend of traditional financial institutions in South Korea seeking to expand their presence in the digital asset market.
The discussions between Kiwoom Securities and Bithumb are said to involve the issuance of new shares through a third-party allotment. This development comes as South Korea's Financial Services Commission (FSC) is preparing to introduce new regulatory reforms in July, which are expected to include a framework for tokenized securities.
Bithumb is recognized as one of the largest crypto exchanges in South Korea based on daily trading volume. Kiwoom Securities' potential entry into the market follows similar strategic investments by other major financial players. Korea Investment & Securities and OKX Ventures recently agreed to invest a combined 160 billion won ($106 million) for a 19.6% stake in the crypto exchange Coinone. Additionally, Samsung entities—Samsung Securities, Samsung SDS, and Samsung Card—collectively acquired a 4% stake in Dunamu, the operator of Upbit, for 612.8 billion won ($408 million). Hana Financial Group also recently acquired a significant stake in Dunamu. Furthermore, Mirae Asset Consulting has agreed to acquire a majority stake in Korbit, another South Korean crypto exchange.
These moves by South Korean financial firms indicate a race to establish a foothold in the burgeoning crypto industry, particularly in anticipation of the FSC's upcoming regulatory framework, which aims to integrate tokenized securities into the broader capital markets by 2027.