Kiwoom Securities in Talks to Acquire Stake in Bithumb via Third-Party Allotment
South Korean brokerage firm Kiwoom Securities is in advanced discussions with Bithumb, the country's second-largest cryptocurrency exchange, to become a strategic investor through a third-party allotment, according to a report by Chosun Ilbo. If the deal materializes, Kiwoom Securities would become a new shareholder of Bithumb, marking another milestone in the accelerating trend of traditional brokerages entering the virtual asset space. Both parties are still negotiating, and no final agreement has been signed.
Second Phase of Virtual Asset Act: Cap on Major Shareholder Stakes
The Korean Financial Services Commission (FSC) is deliberating the second phase of the Virtual Asset Act amendment, which includes a key provision capping the ownership of any major shareholder (holding more than 5%) of a virtual asset exchange at 20%. Under exceptional circumstances approved by the FSC, the cap may be extended to 34%. This regulation aims to prevent excessive control by a single entity and enhance governance transparency. Currently, Bithumb's largest shareholder, Bithumb Holdings, holds a 73.56% stake—far above the proposed limit. If the amendment is enacted, Bithumb Holdings will be forced to significantly reduce or dilute its stake. Introducing multiple shareholders such as Kiwoom Securities is a viable strategy to comply with the new rule.
Bithumb's IPO Plans and Business Separation
Bithumb is actively pursuing an initial public offering (IPO) on the Korea Exchange, with Samsung Securities serving as the lead underwriter. To meet regulatory requirements and optimize its corporate structure, Bithumb plans to spin off its core exchange business (virtual asset trading services) from its holding company operations (investments and shareholdings). This separation aims to isolate risks, facilitate regulatory compliance, and clear the path for the IPO. Bringing in Kiwoom Securities as a strategic investor would not only provide Bithumb with traditional financial expertise and resources but also help restructure its equity base ahead of the listing, reducing the concentration of a single shareholder.
Korean Brokerages Accelerate Crypto Expansion: Trend and Implications
Kiwoom Securities has been a pioneer among Korean brokerages in offering cryptocurrency-linked financial products, such as Bitcoin trusts. Its potential investment in Bithumb signals a deepening integration between traditional finance and the crypto ecosystem in South Korea. The country boasts a highly active cryptocurrency market with a large user base, and brokerages see strategic stakes in exchanges as a direct channel to the digital asset circulation chain. Meanwhile, the regulatory framework is maturing, and the listing of compliant exchanges will attract more institutional funds. If Kiwoom Securities successfully enters Bithumb, it will enhance the exchange's credibility and compliance profile, potentially prompting other brokerages to follow suit and reshaping the competitive landscape of South Korea's virtual asset market.
Negotiations are ongoing, and the final stake size, price, and terms have yet to be disclosed. Market participants are closely watching whether the deal can be finalized before the second phase of the Virtual Asset Act takes effect and whether Bithumb's IPO timeline will accelerate as a result. Foresight will continue to monitor developments.