South Korean brokerage Kiwoom Securities is in talks to buy a stake in cryptocurrency exchange Bithumb, according to a report by ChosunBiz. The discussions come as the country’s traditional financial heavyweights increasingly look to carve out market share in the digital asset sector ahead of incoming regulations for security token offerings (STOs) and stablecoins.
According to the report, the two entities are structuring a third-party share issuance that would allow Kiwoom to buy newly issued Bithumb equities. While the exact size of the investment and the final ownership percentage remain under negotiation, a finalized deal would see Kiwoom join the ranks of Samsung Securities, Mirae Asset, and Korea Investment & Securities, all of which have recently moved to fortify their presence in the crypto infrastructure space.
A Bithumb official said, “We are discussing partnership possibilities with the financial sector and various companies, but nothing has been specifically reviewed or decided upon yet.”
Regulation shapes corporate restructuring
The ongoing investment talks come as South Korea’s brokerage firms move deeper into the digital asset market ahead of new crypto regulations. Industry observers say the proposed rules have encouraged closer ties between traditional financial companies and cryptocurrency exchanges as both sides prepare for a changing regulatory landscape.
One proposal under the Phase 2 Virtual Asset Act would limit major shareholders in crypto exchanges to a 20% stake, although some investors could be allowed to own as much as 34%. Bithumb Holdings currently owns 73.56% of the exchange, meaning the final rules could require changes to its ownership structure.
Bithumb has also made changes to its corporate governance. Founder and former Chairman Lee Jung-hoon’s group recently strengthened its influence through DAA, easing uncertainty over the company’s ownership. At the same time, Vident is seeking to sell its remaining stake in Bithumb while facing delisting proceedings related to embezzlement and breach of trust allegations.
IPO plans face delays
Amidst the structural overhaul, Bithumb continues to pursue its ambitions to go public, though the timeline has slipped. The exchange now expects its initial public offering (IPO) to materialize after 2028, a significant delay from its initial projections.
Chief Financial Officer Jeong Sang-gyun said the company remains focused on “strengthening accounting policies, internal controls and conducting thorough internal verification.”
As part of those preparations, Bithumb signed an IPO advisory agreement with Samjong KPMG that runs through the end of 2027. The exchange is also restructuring its business by separating its trading operations from its holding company in an effort to improve its corporate value ahead of the planned listing.
Financial pressure and investigation continue
Kiwoom’s potential capital injection comes at a critical time for Bithumb, which is currently navigating a harsh financial downturn.
The exchange’s Q1 2026 earnings report revealed a sharp contraction, with total revenue plunging 57.6% year-over-year to 82.5 billion won. Operating profit was nearly wiped out, dropping 95.8% to just 2.9 billion won. Ultimately, Bithumb posted a net loss of 86.9 billion won for the quarter, a sharp reversal from the profits recorded during the same period last year.
The company said the weaker results were driven by geopolitical tensions, high interest rates, lower trading activity, crypto asset impairment losses and rising regulatory costs. At the same time, Bithumb is facing increased scrutiny from South Korean authorities. Prosecutors have named Chief Executive Officer Lee Jae-won as a suspect in an investigation into alleged bribery and preferential hiring involving the son of independent lawmaker Kim Byung-ki.
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