South Korean brokerage Kiwoom Securities has entered negotiations to acquire a stake in cryptocurrency exchange Bithumb through a planned purchase of newly issued shares, local media reported on Monday.
Summary
- Kiwoom Securities is negotiating to acquire a stake in Bithumb through a planned purchase of newly issued shares.
- Bithumb continues preparing for a 2028 IPO as South Korea advances discussions on new digital asset ownership rules.
- The investment talks follow recent regulatory action against Bithumb over personal data transfers and anti money laundering compliance.
According to a ChosunBiz report, Kiwoom and Bithumb are discussing a third-party share allocation under which the exchange would issue new shares for Kiwoom to buy. The report added that both sides are still negotiating the size of the investment and the percentage stake, with no final terms agreed.
The proposed investment would add another major financial institution to South Korea’s digital asset sector as Hana Bank, one of the country’s four largest banks, disclosed plans last month to acquire a $670 million stake in Dunamu, the operator of Upbit. Local media later reported that three Samsung affiliates would purchase about $407.7 million worth of Dunamu shares, securing a combined 4% ownership interest.
Meanwhile, international cryptocurrency firms have also expanded their investments in the country. OKX Ventures announced in May that it would purchase a 19.6% stake in Coinone, while Binance completed its acquisition of Gopax after several years of regulatory delays.
Bithumb prepares for IPO as ownership talks continue
The investment negotiations come days after South Korea’s Personal Information Protection Commission fined Bithumb 210 million won, or about $136,000, for violating rules governing overseas transfers of personal information.
The regulator also ordered the exchange to revise its cross border data transfer procedures after finding that user information had been sent overseas without fully meeting requirements under the Personal Information Protection Act.
The privacy case followed earlier enforcement action against Bithumb over anti money laundering compliance. As previously reported by crypto.news, South Korean regulators imposed a 36.8 billion won penalty after identifying deficiencies related to customer due diligence, transaction monitoring, and transfers involving unregistered overseas virtual asset service providers.
The Personal Information Protection Commission also published new blockchain privacy guidelines that require firms to address personal data protection when designing blockchain-based services.
In the meantime, Bithumb has continued preparations for a public listing while pursuing the investment discussions. The exchange has signed an IPO advisory agreement with Samjong KPMG that runs through the end of 2027, and Chief Financial Officer Jeong Sang-gyun said in April that the company expects to list in 2028.
South Korean lawmakers are also working on the Digital Asset Basic Act, which seeks to establish a comprehensive legal framework for cryptocurrencies. The proposed legislation would limit a single shareholder’s ownership in a cryptocurrency exchange to 20% in most cases, while allowing holdings of up to 34% under specific conditions that remain under discussion.
