South Korea's financial sector is witnessing a significant shift as Korea Investment & Securities (KIS), one of the country's largest brokerages, is conducting internal reviews for a potential stake acquisition in the cryptocurrency exchange Coinone. This strategic move is driven by upcoming regulatory changes, specifically a proposed 20% ownership cap for major shareholders of crypto exchanges under the forthcoming Digital Asset Basic Act.
The proposed regulation directly impacts Coinone's current ownership structure, where CEO Cha Myung-hoon controls approximately 53.4% of the exchange. If enacted, this would force a significant divestment, creating an opportunity for institutional players like KIS to acquire shares. Industry sources suggest KIS is targeting a stake of around 20%, aligning with the expected regulatory ceiling. Exchanges would be given a three-year grace period to comply with the new ownership rules.
KIS enters these preliminary discussions from a position of financial strength, having reported a record net profit of 2.01 trillion won ($1.4 billion) in 2025. The brokerage aims to strengthen its digital asset presence and expand into regulated crypto infrastructure. For its part, Coinone has confirmed ongoing discussions with multiple parties but has not finalized any agreement. The exchange has maintained stable revenue but has faced profitability pressures due to market volatility.
This potential deal is part of a broader wave of consolidation and institutional entry into South Korea's crypto market, spurred by regulatory pressure. Recently, Mirae Asset Group acquired a controlling 92% stake in exchange Korbit, and Binance secured approval to acquire Gopax. Regulators are pushing to treat crypto exchanges as financial infrastructure, aiming to improve governance and reduce concentration risks, which in turn is attracting traditional financial firms seeking to integrate digital asset services.
