South Korean brokerage firm Kiwoom Securities Seeking equity investment BithumbIt is the country’s second largest cryptocurrency exchange by trading volume. The two parties are said to be negotiating now to agree It is structured as a private placement of newly issued shares to third parties.
Under the proposed arrangement, Bithumb will issue new shares, which Kiwoom Securities will subscribe to and purchase.
Industry sources indicate that Kiwoom has expressed clear interest in this transaction, but the exact ownership percentage and investment size are still being discussed and have not yet been finalized.
The timing of these talks coincides with ongoing regulatory developments in South Korea digital asset sector.
Regulators are advancing the second phase of the Virtual Assets Act, which includes proposals to limit the maximum stake any shareholder can hold in a licensed cryptocurrency exchange.
Standard rules would set the ownership limit at 20 percent, with a possible exception allowing up to 34 percent under special circumstances.
Bithumb Holdings currently controls approximately 73.56 percent of Bithumb, creating significant pressure for share dilution if new ownership restrictions come into effect.
Kiwoom’s move follows similar steps taken by other major South Koreans securities companies.
Companies such as Samsung Securities, Mirae Asset Securities, and Korea Investment & Securities have recently invested in or completed digital asset platforms.
The broader trend reflects traditional financial institutions seeking greater exposure to the cryptocurrency market as regulatory frameworks for security tokens (STO) and cryptocurrencies. stablecoins becomes clearer.
Bithumb, on the other hand, continues its preparations for a potential listing on the KOSDAQ market. Samsung Securities has been named the lead underwriter of the planned initial public offering.
To improve its valuation before going public, changing is exploring corporate restructuring options, including the possible separation of its core business from newer areas of business.
A. Bithumb The representative noted that the company is actively exploring various partnership opportunities with financial institutions and other organizations, but no specific agreements have been signed at this time.
For Kiwoom Securities, gaining a stake in Bithumb would represent a strategic entry point into the digital asset space. It could open avenues to develop integrated products that combine traditional brokerage services. cryptocurrency trade and related offers.
For BithumbBringing on a reputable securities firm as a shareholder can enhance the governance profile and provide additional resources and expertise as you work towards regulatory compliance and IPO.
potential transaction underline Increasing rapprochement between South Korea and its established financial sector cryptocurrency industry. The market is expected to see further consolidation and professionalization in the coming months as clearer rules emerge and major players form alliances.
