South Korean brokerage Kiwoom Securities has entered negotiations to acquire a stake in cryptocurrency exchange Bithumb through a planned purchase of newly issued shares, local media reported on Monday.
According to a ChosunBiz report, Kiwoom and Bithumb are discussing a third-party share allocation under which the exchange would issue new shares for Kiwoom to buy. The report added that both sides are still negotiating the size of the investment and the percentage stake, with no final terms agreed.
The proposed investment would add another major financial institution to South Korea’s digital asset sector, as Hana Bank, one of the country’s four largest banks, disclosed plans last month to acquire a $670 million stake in Dunamu, the operator of Upbit. Local media later reported that three Samsung affiliates would purchase about $407.7 million worth of Dunamu shares, securing a combined 4% ownership interest.
Meanwhile, international cryptocurrency firms have also expanded their investments in the country. OKX Ventures announced in May that it would purchase a 19.6% stake in Coinone, while Binance completed its acquisition of Gopax after several years of regulatory delays.
Bithumb prepares for IPO as ownership talks continue
The investment negotiations come days after South Korea’s Personal Information Protection Commission fined Bithumb 210 million won, or about $136,000, for violating rules governing overseas transfers of personal information.