South Korea’s Mirae Asset Group has acquired a 92% stake in Korbit for $93 million, reflecting investor confidence in regulated crypto. The acquisition comes amid an increased clampdown on South Korean crypto exchanges for compliance violations.
Mirae’s board approved the cash-only purchase deal on February 5. However, the deal is expected to be completed within 7 business days after all deal-closing conditions are met.
Mirae executives also stated that the acquisition aims to secure future growth drivers through digital asset businesses. The financial group’s investment reflects South Korea’s growing institutional demand for direct crypto exposure through established platforms.
Mirae Asset’s acquisition of Korbit represents a strategic entry into digital assets via an established, compliant platform. The group’s existing distribution capabilities and client relationships could significantly expand Korbit’s reach within South Korea’s institutional and retail markets.
The acquisition comes amid increased review of South Korean crypto exchange regulation, with regulators investigating several platforms for compliance violations. South Korea’s financial authorities are moving to more closely regulate crypto exchanges, following a recent incident at Bithumb involving a wrongful BTC payment worth around $42.7 million (~62T KRW).
South Korea’s FSC Governor says internal control standards are lacking
Although Korbit currently operates under a full license and is fully compliant, South Korea’s Financial Supervisory Service Governor Lee Chan-jin says internal control and risk standards across the crypto market are still insufficient. Lee notes that only when actual holdings match book balances in real time can system stability be secured. He urges the relevant local authorities to address these issues in the second-stage legislation.
The South Korean Financial Services Commission (FSC) vice chairman, Kwon Dae-young, also said that financial institutions are monitored around the clock. He stressed that multiple multilayered measures are already in place for major incidents.
Kwon also added that South Korean authorities are preparing to incorporate Governor Lee’s suggestions into the second-stage legislation.
“We will reflect internal control standards and the like in the second-stage legislation and prepare to give them binding force.”
-Kwon Dae-young, Vice Chairman at the Financial Services Commission
Following the recent Bithumb incident, South Korea’s financial authorities have also identified the need for additional regulatory measures during the legislative process for the Digital Asset Basic Act (the second-stage virtual asset law).
They plan to pursue measures, including mandatory periodic third-party checks and strict imposition of liability for damages without fault when user harm results from computer system accidents. Internal control standards are also expected to be raised to match those of traditional financial companies.
South Korean banks move to review crypto partnerships
South Korea’s Kakao Bank and KBank, which have partnerships with crypto exchanges, are also closely monitoring the situation and considering whether to renew their contracts, following the recent Bithumb Bitcoin overdraft incident. Local banks are especially concerned about the potential for their reputations being damaged if a crypto exchange incident occurs.
According to local media on February 13, Kakao Bank is discussing the situation with partners Coinone and Bithumb. The bank is assessing areas where responses are needed as it plans to review its one-year real-name account partnership with Coinone in Q3 this year.
South Korean crypto exchanges must establish real-name account partnerships with local banks to facilitate KRW deposits and withdrawals.
KBank is also reportedly monitoring the situation to decide whether to renew its contract with Upbit upon the partnership’s expiration this October. Meanwhile, Kookmin Bank is set to review its contract with Bithumb. Kookmin Bank is demanding that Bithumb strengthen its internal controls.
On the other hand, a Kookmin Bank official recently emphasized that the bank regularly reviews the risks associated with crypto operators. The transfer of reputational risk related to stability could be burdensome given its contractual connection to the Bithumb exchange.
