South Korean brokerage Kiwoom Securities has entered talks 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 in talks to acquire part of Bithumb through a planned buyback of newly issued shares.
- Bithumb continues to prepare for a 2028 IPO as South Korea moves forward with negotiations on new digital asset ownership laws.
- The investment talks follow recent regulatory action against Bithumb over the transfer of personal data and anti-money laundering compliance.
According to a ChosunBiz report, Kiwoom and Bithumb are discussing a third-party share deal where the exchange will issue new shares for Kiwoom to buy. The report added that both parties are still negotiating the size of the investment and the percentage share, with no final terms agreed upon.
The proposed investment would add another major financial institution to South Korea’s digital assets sector as Hana Bank, one of the country’s four largest banks, revealed plans last month to acquire a $670 million stake in Dunamu, the operator of Upbit. Local media later reported that three Samsung affiliates would buy Dunamu shares for an estimated 407.7 million, acquiring a 4% ownership interest.
Meanwhile, international cryptocurrency firms have also increased their investments in the country. OKX Ventures announced in May that it would buy 19.6% of Coinone, while Binance completed the acquisition of Gopax after several years of regulatory delays.
Bithumb prepares for IPO as ownership talks continue
The investment talks come days after South Korea’s Personal Information Protection Commission fined Bithumb 210 million won, or about $136,000, for violating laws governing the transfer of personal information overseas.
The regulator also ordered the exchange to review its cross-border data transfer procedures after finding that user information was sent abroad without fully meeting the requirements under the Personal Information Protection Act.
The privacy case follows an earlier enforcement action against Bithumb in connection with money laundering. As previously reported by crypto.news, South Korean regulators imposed a 36.8 billion won fine after identifying errors related to customer due diligence, transaction monitoring, and transfers involving unregistered virtual asset service providers abroad.
The Personal Information Protection Commission has also published new blockchain privacy guidelines that require firms to address the protection of personal data when designing blockchain-based services.
Meanwhile, Bithumb has continued preparations for a public listing while pursuing investment negotiations. The exchange has signed an IPO advisory agreement with Samjong KPMG that runs through late 2027, and Chief Financial Officer Jeong Sang-gyun said in April that the company expects to be listed in 2028.
South Korean lawmakers are also working on the Digital Asset Basic Law, which seeks to establish a comprehensive legal framework for cryptocurrencies. The proposed law would limit a single shareholder’s ownership in cryptocurrency exchanges to 20% in most cases, while allowing for holdings of up to 34% under certain circumstances that are still being discussed.
