OKX’s Investment in South Korea
Cryptocurrency exchange OKX is inching closer to a significant investment in the South Korean market by negotiating to acquire a notable share in Coinone, a prominent local exchange. In collaboration with Korea Investment & Securities, both parties are aiming to secure around 20% ownership of Coinone, as reported by Yonhap News Agency. Interestingly, Coinone plans to create new shares for this investment, preserving the current management structure instead of reallocating existing shares.
Regulatory Approval and Market Context
Should the deal receive approval from regulatory authorities, this would mark OKX as the second international crypto exchange, following Binance’s investment in Gopax, to gain a foothold in a major South Korean trading platform. Coinone is among the limited licensed exchanges in the country, catering to fiat-to-crypto transactions; however, the trading landscape remains predominantly dominated by Upbit and Bithumb, South Korea’s leading exchanges.
Recent Developments in the Local Market
This development coincided with Hana Financial Group’s recent announcement of a $670 million acquisition of a stake in Dunamu, the parent company of Upbit. Earlier this year, Mirae Asset, a financial conglomerate, revealed intentions to acquire a 92% interest in Korbit, another competitor in the local exchange market.
Legislative Considerations
In the backdrop of these deals, South Korean legislators are currently deliberating over potential ownership restrictions in the digital asset sector as enshrined in the proposed Digital Asset Basic Act. Reports suggest that the government may impose a cap of 34% for corporate ownership, while individual investors could be restricted to 20%. This regulatory scrutiny is relevant to Coinone’s current ownership, where The One Group holds 34.3% and founder Cha Myung-hoon has a 19.14% stake, making him the largest shareholder in The One Group. Com2uS Holdings, a gaming enterprise, also possesses a significant 21.95% share, with its investment arm owning an additional 16.47%.
OKX’s Broader Strategy
The ongoing negotiations for Coinone align with OKX’s broader strategy of aggressive growth, which encompasses various sectors including payments and institutional services. Recently, the exchange revealed that its OKX Card, a payment product linked to stablecoins and developed in partnership with Mastercard and Circle, recorded substantial user engagement in its initial month, with grocery purchases representing 26% of transaction activity across the European Economic Area.
Furthermore, OKX also rolled out an innovative Agent Payments Protocol aimed at facilitating automated transactions spanning multiple blockchains, supported by established ecosystems such as Ethereum and Aptos. Additionally, OKX continues to enhance its institutional service offerings through a partnership with BitGo, enabling clients to execute trades while ensuring their assets are held in third-party custody.
