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Kiwoom-Bithumb Deal Tests South Korea's Crypto Ownership Cap
Kiwoom Securities negotiates a direct stake in Bithumb via new share issuance as South Korea's FSC prepares a 20% ownership cap that would force Bithumb's parent to cut its 73.56% holding.
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Kiwoom Securities is in talks to buy a stake in Bithumb, the country's second-largest crypto exchange, through a direct share issuance. The size of the investment is still under negotiation, Chosun Biz reported, citing unnamed sources.
The deal would work like this: Bithumb would issue new shares to Kiwoom, giving the brokerage a direct equity stake while funneling fresh capital into the exchange. It's a structure that lets both sides move fast – no secondary market purchase, no negotiation with existing holders.
South Korea's Financial Services Commission is writing a second-phase virtual asset bill that could reshape who controls Bithumb. The draft caps major shareholders at 20% ownership, with exceptions that allow up to 34%. Bithumb Holdings now controls 73.56% of the exchange. If the law passes as proposed, that parent company would need to shed more than half its stake – roughly 39 percentage points worth of shares.