South Korean brokerage firm Kiwoom Securities is pursuing an equity investment in Bithumb, the country’s second-largest cryptocurrency exchange by trading volume. The two parties are currently said to be negotiating a deal structured as a third-party private placement of newly issued shares.
Under the proposed arrangement, Bithumb would issue fresh shares that Kiwoom Securities would subscribe to and purchase.
Industry sources indicate that while Kiwoom has expressed clear interest in the transaction, the exact ownership percentage and investment size are still being discussed and have not been finalized.
The timing of these talks coincides with ongoing regulatory developments in South Korea’s digital asset sector.
Regulators are advancing the second phase of the Virtual Asset Act, which includes proposals to limit the maximum stake any single shareholder can hold in a licensed cryptocurrency exchange.
Standard rules would cap ownership 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 dilution if the new ownership restrictions take effect.
This move by Kiwoom follows similar steps taken by other major South Korean securities firms.
Companies such as Samsung Securities, Mirae Asset Securities, and Korea Investment & Securities have recently pursued or completed investments in 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 stablecoins become clearer.
Bithumb, for its part, continues preparations for a potential listing on the KOSDAQ market. Samsung Securities has been named lead underwriter for the planned initial public offering.
To improve its valuation ahead of going public, the exchange is exploring corporate restructuring options, including the possible separation of its core trading business from newer business segments.
A Bithumb representative stated that the company is actively exploring various partnership opportunities with financial institutions and other organizations, though no specific agreements have been concluded 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 for developing integrated products that combine traditional brokerage services with cryptocurrency trading and related offerings.
For Bithumb, bringing in a reputable securities firm as a shareholder may enhance its governance profile and provide additional resources and expertise as it works toward regulatory compliance and a public listing.
The potential transaction underscores the accelerating convergence between South Korea’s established financial sector and its cryptocurrency industry. As clearer rules emerge and major players form alliances, the market is expected to see further consolidation and professionalization in the coming months.
