Key Takeaways:
South Korean brokerage Korea Investment & Securities (KIS) is exploring a potential stake in crypto exchange Coinone, as new rules threaten to cap individual shareholdings in such platforms at 20 percent.
The Korea Herald first reported the discussions, citing people familiar with the matter, who said KIS has begun engaging with regulators. While no deal is final, the context is a proposed ownership cap that would directly impact Coinone Chairman Cha Myung-hoon's controlling 53.44% stake.
The proposed 20 percent ownership limit, agreed upon by the Democratic Party of Korea’s digital asset task force and the Financial Services Commission (FSC), would give exchanges three years to comply. This regulatory pressure is forcing a potential restructuring at Coinone, one of South Korea's major crypto exchanges. KIS, with a reported net profit of over 2 trillion won ($1.3 billion) in 2025, is financially positioned for such an acquisition.
This potential deal signals a broader trend of consolidation and convergence in the South Korean crypto market, where traditional financial giants are moving to secure positions. It follows a similar move by rival Mirae Asset Group, which is acquiring a controlling stake in the Korbit exchange. A KIS investment in Coinone would further concentrate the market, leaving fewer, larger players to navigate the evolving regulatory landscape.
The regulatory proposal could force Coinone Chairman Cha Myung-hoon to sell a significant portion of his shares to comply with the 20% ceiling. Even with a reduced stake, he could potentially retain management control of the exchange.
The move by KIS is part of a larger wave of institutional interest in the country's digital asset sector. In late 2025, Naver Financial announced a major all-stock deal to acquire Dunamu, the operator of Upbit, South Korea's largest crypto exchange. However, that deal was recently delayed amid ongoing regulatory reviews and a decline in trading volumes.
These developments highlight the increasing pressure on South Korean crypto exchanges to formalize their ownership structures and comply with stricter financial regulations. The entry of established players like KIS and Mirae Asset could bring increased legitimacy and stability to the sector, but also raises concerns about market concentration. The next three years will be a critical period of adjustment for exchanges as they adapt to the new ownership rules.
This article is for informational purposes only and does not constitute investment advice.
