Kiwoom Securities in Talks to Acquire Stake in Bithumb Amid Growing Interest in Crypto Market

Kiwoom Securities in Talks to Acquire Stake in Bithumb Amid Crypto Surge

South Korea’s financial landscape is witnessing a significant shift as Kiwoom Securities, one of the country’s leading brokerages, reportedly enters negotiations to acquire a stake in Bithumb, one of South Korea’s largest cryptocurrency exchanges. This move aligns with a growing trend of traditional financial institutions venturing into the burgeoning crypto market.

According to a report from local outlet ChosunBiz, the discussions involve a third-party allotment of new shares, allowing Kiwoom to purchase newly issued stock from Bithumb. While the specifics of the investment and the percentage of the stake are still under negotiation, a spokesperson from Bithumb emphasized that no definitive agreements have been reached yet. The exchange is also exploring partnerships with various financial institutions.

This potential acquisition comes at a pivotal time as South Korea’s Financial Services Commission (FSC) prepares to unveil new regulatory reforms aimed at the crypto sector. These reforms, set to be announced in July, will include a framework for tokenized securities, marking a significant step in integrating blockchain technology into mainstream financial systems.

Regulatory Changes Driving Brokerage Interest

The upcoming regulatory framework is part of the amended Capital Markets Act and Electronic Securities Act, which will introduce South Korea’s first tokenized securities framework, scheduled to take effect on February 4, 2027. The FSC’s recent overhaul of the capital markets aims to align blockchain-based investment products with traditional securities trading and settlement processes.

In addition to the tokenized securities framework, South Korea is also working on the Digital Asset Basic Act, a broader regulatory framework for cryptocurrencies. Although progress has been slow, lawmakers are optimistic about advancing the bill in the latter half of the year. One key provision under consideration would limit a single shareholder’s stake in a crypto exchange to 20%, with exceptions allowing up to 34% under special circumstances.

Wave of Stake Purchases Across Korean Exchanges

Kiwoom’s potential stake in Bithumb is part of a broader trend of financial institutions investing in domestic crypto exchanges. Recently, Korea Investment & Securities and OKX Ventures announced a joint investment of 160 billion won (approximately $106 million) for a 19.6% stake in Coinone. Similarly, Samsung Securities, along with its affiliates, acquired a combined 4% stake in Dunamu, the operator of Upbit, for 612.8 billion won (around $408 million).

In another notable deal, Hana Financial Group revealed plans to purchase a 6.55% stake in Dunamu from Kakao Investment for over $668 million, positioning itself as Dunamu’s fourth-largest shareholder. Earlier this year, Mirae Asset Consulting secured a 92.06% stake in Korbit for 133.48 billion won (about $93 million), gaining majority control of the exchange.

As the crypto market continues to evolve, Binance has also completed its acquisition of the Gopax exchange after navigating regulatory hurdles. Meanwhile, Bithumb is gearing up for an initial public offering (IPO), having signed an advisory agreement with Samjong KPMG that extends through 2027. The exchange’s CFO, Jeong Sang-gyun, indicated that the IPO is likely to occur in 2028.

As Kiwoom Securities explores this potential acquisition, the South Korean financial landscape is poised for further transformation, reflecting a growing acceptance of cryptocurrencies in mainstream finance.