Dunamu, which operates the virtual asset exchange Upbit, has announced a merger with Naver Financial, while Mirae Asset Group is pursuing the acquisition of the virtual asset exchange Korbit. This foretells significant changes in the domestic virtual asset industry. Meanwhile, Bithumb is preparing for an initial public offering (IPO), being the first among domestic virtual asset exchanges.
According to the virtual asset industry on the 29th, Mirae Asset Group is in talks to acquire shares in Korbit from its largest shareholder NXC (60.5% stake) and second-largest shareholder SK Planet (31.5% stake). Currently, Korbit holds a market share of 0-1% in Korea, indicating a minor presence.
Industry estimates value the transaction at between 100 billion to 140 billion won. A financial sector insider noted, “If procedures go smoothly, the acquisition is expected to conclude next year.” However, regulations could be a critical factor. Under the “separation of finance and virtual assets” principle introduced in 2017, financial companies are restricted from participating in virtual asset businesses. While Mirae Asset Consulting, the acquisition entity, is a non-financial company, it owns a 36.92% stake in Mirae Asset Global Investments.
A representative from the Financial Supervisory Service mentioned, “As the acquisition discussions are still in the initial stages, we haven’t yet determined the precise application of regulations.”
Dunamu is progressing with its merger with Naver Financial, with both companies having held board meetings last month to approve a comprehensive stock swap. The exchange ratio is set at 1 to 2.54, and upon completion, Dunamu will become a wholly-owned subsidiary of Naver Financial.
Recently, Dunamu renewed its Virtual Asset Service Provider (VASP) license with the Financial Intelligence Unit (FIU). Previously, Dunamu faced a 35.2 billion won fine from the FIU for violating customer confirmation and trading restriction duties. Additionally, last month, approximately 44.5 billion won worth of virtual assets were stolen due to hacking, which led to a prolonged VASP license renewal review that lasted about 16 months.
Bithumb, ranked as the second-largest virtual asset exchange in Korea, is planning to go public next year. If successful, this would mark the first listing of a virtual asset exchange in the country, although prospects remain uncertain.
The FIU is currently investigating whether Bithumb neglected anti-money laundering (AML) duties while sharing its order book with the Australian exchange, Stellar. In October, during a government audit, Finance Committee Chairman Lee Eok-won stated that strict actions would be taken if illegal activities were found.
Bithumb has also been in conflict with financial authorities over its coin lending service, which allows users to use their assets as collateral to borrow and trade coins on the exchange. Despite being advised by financial authorities to halt new operations until guidelines are established, Bithumb reduced borrowing limits but continued the service. Consequently, financial authorities conducted an on-site inspection of Bithumb at the end of August.
Bithumb was notably not invited to a virtual asset industry meeting convened by the newly appointed financial supervisor in September, a meeting that even included smaller exchanges and companies yet to launch services at the time.