South Korean brokerage Kiwoom Securities is reportedly in discussions to acquire a stake in crypto exchange Bithumb, making it the latest traditional finance firm to seek a foothold in the country’s digital asset sector ahead of sweeping regulatory changes.
Third-Party Share Allotment on the Table
According to a report by Chosun Biz published Monday, Kiwoom Securities and Bithumb are discussing a third-party allotment of new shares, a mechanism that would allow Kiwoom to acquire freshly issued Bithumb stock rather than purchasing existing shares from current holders. Cointelegraph reached out to both companies for comment on the reported talks.
Bithumb ranks among South Korea’s largest crypto exchanges by daily trading volume, according to CoinGecko data.
FSC Regulatory Overhaul Driving Urgency
The reported negotiations come as South Korea’s Financial Services Commission (FSC) prepares to announce new regulatory reforms in July, including a framework for tokenized securities. The country is moving to bring tokenized securities under its capital markets framework from 2027, anchored by amendments to the Capital Markets Act and the Electronic Securities Act. These form the country’s first tokenized securities framework, scheduled to take full effect on February 4, 2027.
The FSC also folded token securities infrastructure into a broader overhaul of South Korea’s capital markets last Wednesday, part of efforts to modernize financial markets and potentially align blockchain-based investment products with mainstream securities settlement systems.
Korean Brokerages Target Crypto Exchanges
Kiwoom’s reported approach follows a string of major deals by South Korean financial institutions targeting local crypto exchanges and exchange operators over recent months.
On May 29, Korea Investment & Securities (KIS) and OKX Ventures agreed to invest a combined 160 billion won ($106 million) to buy a 19.6% stake in crypto exchange Coinone. A day earlier, Samsung Securities, Samsung SDS and Samsung Card acquired a combined 4% stake in Dunamu, the operator of crypto exchange Upbit, for $408 million. On May 15, Hana Financial Group said it would acquire a 6.55% stake in Dunamu from Kakao Investment for more than $668 million, becoming the Upbit operator’s fourth-largest shareholder. Earlier, in February, Mirae Asset Consulting agreed to acquire a 92.06% stake in Korbit for $93 million, taking majority control of the exchange as part of its digital asset expansion.
