South Korea's Kiwoom Securities to acquire stake in Bithumb crypto exchange: report

South Korean financial giant Kiwoom Securities is in the process of acquiring a stake in Bithumb, the country's second-largest cryptocurrency exchange, according to a local media report.

ChosunBiz reported on Monday that Kiwoom and Bithumb are currently in discussions regarding a third-party allocation of new shares — Bithumb would issue new shares, which Kiwoom would then purchase. 

Further details, such as the investment size or stake percentage, are still under negotiation, the report said. The Block has reached out to Kiwoom and Bithumb for comment.

The latest report marks another major South Korean financial institution moving to acquire a stake in a cryptocurrency company, amid local regulatory developments.

Last month, Hana Bank, one of the four largest banking institutions in the country, disclosed that it will acquire a $670 million stake in Dunamu, the company behind Upbit crypto exchange. Later in May, local media reported that three Samsung subsidiaries would acquire roughly $407.7 million worth of Dunamu shares, giving them a combined 4% stake.

Overseas platforms have also shown interest in South Korean digital asset platforms. OKX Ventures, the investment arm of the global crypto exchange, announced in May that it will purchase a 19.6% stake in Coinone. Binance has already completed its acquisition of Gopax exchange after years of regulatory delay.

South Korea is currently developing the Digital Asset Basic Act, a comprehensive regulatory framework on crypto. While the legislation has been stalled without proper discussion for much of this year, Korean legislators are looking to advance the bill in the second half of the year, Blockchain Today reported.

The legislation may place a limit on the percentage of stake a single shareholder can hold in a cryptocurrency exchange — 20% is the baseline, but up to 34% can be allowed under special circumstances, amid ongoing discussions.

Meanwhile, Bithumb is preparing for an upcoming initial public offering, signing an IPO advisory agreement with Samjong KPMG through the end of 2027. Its Chief Financial Officer Jeong Sang-gyun confirmed in April that the IPO would likely take place in 2028.