Kiwoom Securities Eyes Stake in Bithumb
According to a report by South Korean media outlet Chosun Biz, Kiwoom Securities is seeking to acquire a stake in Bithumb, the country's second-largest virtual asset exchange. The two parties are discussing a third-party rights offering of new shares, though the exact equity ratio and investment size are still under negotiation. If completed, this would mark another significant strategic investment by a traditional Korean brokerage firm into the crypto exchange space.
Brokerages Rush into Crypto Ahead of STO and Stablecoin Institutionalization
Securities firms are accelerating their entry into the virtual asset industry ahead of the imminent institutionalization of security token offerings (STOs) and stablecoins. The clearer regulatory framework is encouraging traditional financial institutions to seize first-mover advantages. Other Korean brokerages have already established digital asset subsidiaries or partnered with crypto exchanges; Kiwoom's move further underscores this industry-wide trend.
Regulatory Pressure: Major Shareholder Ownership Caps Loom
Concurrently, the Financial Services Commission (FSC) is deliberating the second phase of the Virtual Asset Act, which includes major shareholder ownership restrictions. Under the draft proposal, major shareholders of virtual asset exchanges would be limited to a 20% stake in principle, with exceptions allowing up to 34%. Bithumb's largest shareholder, Bithumb Holdings, currently owns 73.56%. If the regulation is implemented, Bithumb Holdings would need to divest more than 50 percentage points—a dramatic shift that could reshape Bithumb's ownership and control. Kiwoom Securities' potential investment may also be part of Bithumb's strategy to bring in strategic investors to comply with the upcoming regulatory requirements.
The negotiations are ongoing, and further details are expected to emerge. South Korea's virtual asset industry is entering a period of dual transformation driven by traditional finance entry and regulatory restructuring.