Key highlights:
- Kiwoom Security wants a portion of Bithumb, South Korea’s second-largest crypto exchange.
- Kiwoom will obtain a stake in Bithumb via a private placement, says Chosun Biz.
- South Korean brokerages are racing for a share in local crypto exchanges amid incoming regulations.
Kiwoom Securities is reportedly eyeing a stake in Bithumb, joining a heated race among traditional finance firms to own a piece of South Korea’s digital asset service providers. The move comes as South Korea prepares for a raft of incoming crypto rules, with TradFi firms jostling to take advantage of the seismic changes.
Kiwoom Securities eyes a stake in Bithumb
According to a Chosun Biz
Korean firms jostle for local crypto exchanges
Emerging reports of Kiwoom Securities eyeing the acquisition of a stake in Bithumb continue a red-hot streak of South Korea’s traditional finance players turning their gaze to digital asset service providers.
At the tail end of May, Korea Investment & Securities (KIS) teamed up with OKX Ventures to purchase a 19.6% stake in Coinone.
Previously, Mirae Asset Consulting acquired a 92% stake in South Korea-based Korbit for $93 million, while Hana Financial Group revealed plans to acquire a 6% stake in Upbit’s operator, Dunamu. Meanwhile, Samsung entities scooped up a 4% stake in Dunamu, in a deal worth a staggering $408 million.
The frenzied rush comes as crypto operators scramble to sell a portion of their ownership to comply with incoming regulations, triggering a fire sale. Apart from snapping up forced equity divestments, traditional finance firms are eyeing a major corporate crypto and ETF boom once regulatory approval clears.
Last week, South Korea’s KOSPI tanked by nearly 10%, potentially driving local brokerages to diversify beyond traditional equity revenue.
Source:: Kiwoom Securities Targets Bithumb Stake Amid South Korea’s Incoming Crypto Rules