Kiwoom Securities, a South Korean brokerage, has initiated talks to acquire a stake in the cryptocurrency exchange Bithumb by purchasing newly issued shares, as reported by local media on Monday.
Summary
- Kiwoom Securities is negotiating to acquire a stake in Bithumb through newly issued shares.
- Bithumb is gearing up for a 2028 IPO as South Korea contemplates new regulations concerning digital asset ownership.
- This investment dialogue follows recent regulatory actions against Bithumb for issues related to personal data transfers and anti-money laundering compliance.
A report by ChosunBiz indicates that Kiwoom and Bithumb are considering a third-party share allocation where the exchange will issue new shares specifically for Kiwoom’s purchase. The report highlighted that both sides are still deliberating the investment amount and percentage stake, with final terms yet to be confirmed.
This potential investment would introduce another prominent financial entity into South Korea’s digital asset market. Recently, Hana Bank, one of the nation’s largest banks, announced plans to acquire a $670 million stake in Dunamu, the operator behind Upbit. Additionally, local media disclosed that three Samsung affiliates are looking to purchase about $407.7 million worth of Dunamu shares, collectively achieving a 4% ownership interest.
Simultaneously, international cryptocurrency firms are amplifying their investments in South Korea. OKX Ventures revealed in May its plan to secure a 19.6% stake in Coinone, while Binance successfully completed its acquisition of Gopax after navigating several regulatory hurdles.
Bithumb progresses toward IPO amid ongoing ownership negotiations
The investment talks have emerged soon after South Korea’s Personal Information Protection Commission issued a fine of 210 million won (approximately $136,000) to Bithumb for violating rules on the overseas transfer of personal data.
The regulator has mandated that the exchange revise its cross-border data transfer practices, after discovering that user data was sent abroad without fully complying with the requirements set by the Personal Information Protection Act.
This privacy issue follows previous regulatory actions against Bithumb concerning compliance with anti-money laundering regulations. As reported by crypto.news, South Korean authorities imposed a fine of 36.8 billion won upon identifying deficiencies in customer due diligence, transaction monitoring, and dealings with unregistered overseas virtual asset service providers.
The Personal Information Protection Commission has also issued new blockchain privacy guidelines, requiring firms to incorporate personal data protection in the design of blockchain-based services.
Meanwhile, Bithumb is actively preparing for a public listing while engaging in investment discussions. The exchange has entered into an IPO advisory agreement with Samjong KPMG, which will remain in effect until the end of 2027. Chief Financial Officer Jeong Sang-gyun mentioned in April that the company expects to go public in 2028.
Moreover, South Korean lawmakers are currently working on the Digital Asset Basic Act, which aims to create a comprehensive legal framework for cryptocurrencies. The proposed legislation would generally restrict an individual shareholder’s ownership in a cryptocurrency exchange to 20%, with allowances of up to 34% under certain conditions still being debated.
