- Kiwoom to acquire a stake in Bithumb as South Korea advances STO and stablecoin reforms.
- New FSC ownership rules could force Bithumb Holdings to reduce its stake in the exchange.
As Kiwoom Securities considers investing in Bithumb, the nation’s second-largest cryptocurrency exchange, South Korea’s financial and digital asset industries may be getting closer. The magnitude of the investment and the stock stake are still being negotiated. The two companies are reportedly in talks over a third-party allocation of recently issued shares, according to local newspaper Chosun Biz.
If the transaction goes through, Bithumb will directly issue additional shares to Kiwoom Securities. It gives the exchange new funding and enables the brokerage business to become a shareholder. The possible collaboration is indicative of a larger trend in which established financial institutions are attempting to gain more traction in the digital asset market.
Why Securities Firms Are Turning to Crypto?
The talks take place as South Korea is ready to institutionalise stablecoins and security token offers (STOs) more broadly. Securities firms are increasingly seeking to become more involved in digital assets rather than staying on the sidelines as the nation’s regulatory structure changes.
Brokerages like Kiwoom Securities may find new prospects in tokenised securities, digital asset services, and blockchain-based financial products if they establish tighter relations with a large cryptocurrency exchange. Exchanges can also profit from established financial organisations’ capital strength, governance norms, and experience in risk management.
Ownership Rules Could Reshape Exchange Shareholding
Another factor driving the talks is South Korea’s proposed second-phase virtual asset legislation. The Financial Services Commission (FSC) is considering rules that would generally limit major shareholders in crypto exchanges to a 20% ownership stake. It has exceptions allowing holdings of up to 34%.
These proposals have the potential to significantly alter Bithumb’s ownership structure. The Bithumb Holdings presently holds 73.56% of the exchange. If the proposed laws are put into effect, it would have to cut its ownership by over 50 percentage points.
Additionally, Bithumb is establishing the foundation for its future expansion. Chief Financial Officer Jeong Sang-gyun has stated that a public listing is anticipated in 2028. Also, the exchange has inked an IPO advisory arrangement with Samjong KPMG through 2027.
The talks between Kiwoom Securities and Bithumb are still in progress, but they highlight how South Korea’s changing legal environment is promoting greater cooperation between traditional finance and the cryptocurrency sector.
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