South Korean brokerage firm Kiwoom Securities is reportedly in talks to invest in cryptocurrency exchange Bithumb, marking another sign of growing interest from traditional financial institutions in the country’s digital asset industry.
According to local reports, Kiwoom and Bithumb are discussing a deal that would involve Bithumb issuing new shares for Kiwoom to purchase. The size of the investment and the ownership stake are still being negotiated, and no final agreement has been reached.
If the deal moves forward, Kiwoom would become the latest major financial company to enter South Korea’s rapidly expanding crypto market.
The discussions come at a time when several large financial institutions are increasing their exposure to the digital asset sector. Recently, Hana Bank announced plans to acquire a significant stake in Dunamu, the company behind the cryptocurrency exchange Upbit. Reports have also indicated that several Samsung-affiliated companies are investing in Dunamu as well.
International crypto firms have been making moves in South Korea too. Earlier this year, OKX Ventures announced plans to acquire a stake in Coinone, while Binance completed its acquisition of Gopax after facing regulatory delays for several years.
At the same time, Bithumb is continuing its preparations for a future public listing. The company has signed an advisory agreement with Samjong KPMG to support its IPO plans and is targeting a stock market listing in 2028.
However, the exchange has also faced increased regulatory scrutiny.
Recently, South Korea’s Personal Information Protection Commission fined Bithumb 210 million won, or roughly $136,000, for violating rules related to overseas transfers of personal data. Regulators said the company failed to fully comply with requirements governing how user information is transferred outside the country.
Authorities also ordered Bithumb to improve its procedures for handling cross-border data transfers.
The privacy case followed earlier regulatory action related to anti-money laundering compliance. Regulators previously imposed a large financial penalty after identifying weaknesses in customer verification procedures, transaction monitoring systems, and dealings with certain overseas virtual asset service providers.
Meanwhile, South Korean lawmakers continue working on the Digital Asset Basic Act, a proposed law designed to create a comprehensive regulatory framework for cryptocurrencies and digital asset businesses.
One of the proposals being discussed would limit ownership in cryptocurrency exchanges, generally restricting a single shareholder from owning more than 20% of an exchange. In certain situations, larger ownership stakes could be allowed under specific conditions that are still being debated.
As Bithumb moves forward with its IPO plans and investment discussions, the exchange finds itself at the center of South Korea’s rapidly evolving crypto industry, where growing institutional interest is being matched by stronger regulatory oversight.
