Kiwoom Securities and Bithumb Acquisition Talks
Kiwoom Securities, a prominent brokerage in South Korea, has initiated discussions to acquire a share of the cryptocurrency platform Bithumb. This move involves the potential purchase of newly created shares according to local reports published on Monday. The news, cited by ChosunBiz, indicates that the two parties are exploring a third-party allocation arrangement, where Bithumb would offer new shares for Kiwoom to acquire. However, details regarding the investment amount and the specific percentage of equity remain unsettled as talks are ongoing.
Growing Institutional Interest in Cryptocurrency
This development marks a significant addition to the growing involvement of established financial institutions within South Korea’s burgeoning digital currency market, following Hana Bank‘s recent announcement of a substantial investment in Dunamu, Upbit’s operator, to the tune of approximately $670 million. Additionally, three affiliates of the Samsung Group are reportedly set to invest about $407.7 million for a collective 4% stake in Dunamu.
The increased interest from major players isn’t limited to domestic firms. International investors are also gravitating toward South Korea, highlighted by OKX Ventures‘ announcement in May of a plan to obtain a 19.6% stake in the Coinone exchange, alongside Binance‘s successful acquisition of Gopax, which faced a lengthy regulatory review.
Regulatory Challenges for Bithumb
Complicating matters for Bithumb, just days prior to these investment negotiations, the exchange faced scrutiny from South Korea’s Personal Information Protection Commission, which imposed a fine of 210 million won (around $136,000) for breaches of regulations concerning the cross-border transfer of personal data. This ruling necessitated adjustments in Bithumb’s procedures for transferring user information internationally, after it was discovered that data had been sent abroad without compliance with the Personal Information Protection Act. This incident follows prior sanctions involving anti-money laundering compliance, where regulators fined Bithumb 36.8 billion won for issues related to customer verification and transaction oversight.
Future Plans and Legislative Developments
Alongside these challenges, Bithumb is pursuing plans for an initial public offering (IPO). The exchange has engaged Samjong KPMG for advisory support in its IPO efforts, anticipated to conclude in late 2027, with hopes of listing by 2028, according to Chief Financial Officer Jeong Sang-gyun.
In tandem with these initiatives, South Korean lawmakers are currently working on the Digital Asset Basic Act, a legislative framework intending to govern the cryptocurrency landscape. Among its provisions, the act would typically limit individual ownership in a cryptocurrency exchange to a maximum of 20%, while allowing exceptions for ownership of up to 34% under certain circumstances still under discussion.
