Kiwoom Securities is reportedly seeking to acquire a stake in Bithumb, South Korea’s second-largest cryptocurrency exchange, as traditional financial institutions position themselves for deeper involvement in the country’s digital asset market.
The brokerage and Bithumb are discussing an investment through a third-party allotment of new shares, according to local media reports. Under that structure, Bithumb would issue new shares directly to Kiwoom Securities, giving the broker an equity position in the exchange. The final investment amount and stake size have not yet been decided, and the transaction remains under negotiation.
The talks come as South Korean securities firms move more aggressively toward crypto platforms. Reports said other major financial groups, including Samsung Securities, Mirae Asset Securities and Korea Investment Securities, have also explored or pursued stakes in local virtual asset exchanges. The activity reflects growing expectations that South Korea’s next phase of crypto regulation could create clearer entry points for licensed traditional finance firms.
Bithumb is one of South Korea’s largest crypto trading platforms and ranks behind Upbit in domestic market share. The exchange has spent years preparing for a potential public listing while navigating regulatory scrutiny, ownership questions and operational setbacks. In 2025, Bithumb reorganized parts of its business as it considered an IPO, but more recent reports suggest the listing timetable may now be pushed beyond 2028.
Brokerages Position for Regulated Crypto Access
Kiwoom’s reported interest reflects a broader shift in South Korea’s financial sector. Brokerages that historically focused on equities, futures and retail investment services are increasingly seeking exposure to crypto infrastructure as customer demand for digital assets grows.
The timing is important. South Korea implemented the Virtual Asset User Protection Act in 2024, creating stricter requirements around customer asset protection, unfair trading practices and exchange oversight. Lawmakers and regulators are now considering additional rules covering stablecoins, exchange ownership, market conduct and institutional participation.
For brokers, acquiring minority stakes in exchanges may offer a lower-risk route into crypto than launching standalone platforms. An equity investment can provide strategic exposure to trading volumes, technology, compliance systems and customer networks while allowing traditional firms to wait for more complete regulatory clarity before expanding product offerings.
The proposed structure could also help Bithumb raise capital without immediately pursuing a public listing. A strategic investment from Kiwoom would strengthen Bithumb’s institutional ties and may improve market confidence as the exchange prepares for a more competitive regulatory environment.
Ownership Rules Could Shape Deal Terms
The final shape of any transaction will likely depend on South Korea’s evolving virtual asset ownership rules. Recent reports said new regulations may cap major shareholder stakes in crypto exchanges at 20%, with possible exceptions allowing holdings of up to 34%. Bithumb’s existing ownership structure has drawn attention because its largest shareholder reportedly holds more than 70%, raising questions about future compliance.
That regulatory backdrop makes the Kiwoom talks more than a simple private investment. If South Korea imposes stricter exchange ownership limits, Bithumb may need to diversify its shareholder base and bring in more regulated financial institutions. Strategic investors such as Kiwoom could therefore play a role in reshaping the exchange’s governance before any future IPO attempt.
The market implications are significant. South Korea remains one of the world’s most active crypto trading markets, with retail investors heavily engaged in spot tokens and altcoin trading. A closer link between brokerages and crypto exchanges could accelerate the integration of digital assets into mainstream investment platforms.
For Bithumb, the potential Kiwoom investment could provide capital, credibility and regulatory alignment. For Kiwoom, it would offer a foothold in a market that may become more accessible to traditional finance as the rules mature. The deal’s final terms will show how far South Korea’s brokerage industry is willing to go in treating crypto exchanges as strategic financial infrastructure.
