Key Highlights
- Kiwoom Securities has initiated negotiations to purchase an ownership stake in Bithumb, Korea’s second-largest digital currency platform, through a fresh share allocation.
- Specific investment amounts and ownership percentages remain undetermined as negotiations continue between both parties.
- This development comes after Hana Bank’s $670 million investment in Dunamu and three Samsung entities acquiring a collective 4% position in the same firm.
- Bithumb’s public listing plans have been delayed until 2028 following a February 2026 technical malfunction that generated 620,000 false Bitcoin units and triggered market disruption.
- Korean lawmakers are developing Digital Asset Basic Act legislation that could limit individual shareholder positions in exchanges to 20–34%.
Traditional banking and brokerage firms in South Korea are aggressively pursuing ownership positions in the nation’s cryptocurrency trading platforms. Kiwoom Securities, among Korea’s premier brokerage houses, has entered negotiations to secure a stake in Bithumb, which ranks as the country’s second-largest digital asset exchange measured by transaction volume.
The proposed transaction framework centers on a third-party allocation mechanism. Under this structure, Bithumb would create fresh equity shares that Kiwoom Securities would then acquire. Neither the total investment value nor the precise ownership percentage have been finalized at this stage.
Bithumb has acknowledged ongoing conversations with several financial sector entities regarding prospective collaborations but emphasized that no concrete agreements have been reached. Kiwoom Securities has refrained from issuing public statements on the matter.
Traditional Finance Institutions Compete for Exchange Ownership
Kiwoom Securities represents just one participant in an increasingly competitive landscape. In the previous month, Hana Bank—ranked among Korea’s top four banking institutions—revealed plans to secure a $670 million equity position in Dunamu, the parent organization behind Upbit, Korea’s dominant cryptocurrency exchange.
Soon thereafter, three Samsung affiliate companies disclosed their intention to purchase approximately $407.7 million in Dunamu equity, establishing a combined 4% ownership stake.
International entities have similarly entered the Korean market. OKX Ventures declared in May its agreement to obtain a 19.6% position in Coinone. Meanwhile, Binance finalized its Gopax exchange acquisition following extended regulatory approval processes.
Kiwoom has been expanding its digital asset capabilities through KDX, a collaborative consortium that includes Korea Exchange, Kyobo Life, and KakaoPay Securities. This partnership is focused on establishing a compliant infrastructure for digital asset commerce.
Recent Operational Challenges at Bithumb
Bithumb carries recent operational complications. During February 2026, a technical system malfunction resulted in approximately 620,000 spurious Bitcoin units appearing across customer accounts. This error precipitated a sudden market crash that momentarily drove Bitcoin valuations down to approximately $55,000.
This episode compromised Bithumb’s regulatory reputation and necessitated postponement of its initial public offering plans. While the exchange had established an IPO consulting relationship with Samjong KPMG, the actual market listing is now anticipated no sooner than 2028.
Nevertheless, Bithumb has maintained its expansion initiatives. During March 2026, the platform executed a memorandum of understanding with SSI Digital to investigate establishing a digital trading venue in Vietnam.
Regarding regulatory developments, Korean authorities are crafting the Digital Asset Basic Act. Though the legislation has experienced procedural delays, lawmakers intend to advance it during the latter half of 2026. Among the proposed provisions is a restriction limiting any single shareholder’s stake in a cryptocurrency exchange to 20%, though exceptions permitting up to 34% ownership under particular conditions are being considered.
