Key Takeaways
- • Mirae Asset completed a $92 million acquisition of Korbit, South Korea's oldest crypto exchange, securing 92% ownership and establishing a strategic foothold in digital asset infrastructure alongside its securities and tokenized securities operations.
- • Korea Investment & Securities is in early-stage negotiations to acquire approximately 20% of Coinone, the country's third-largest crypto exchange, as part of a broader industry consolidation wave driven by delayed security token offering (STO) legislation.
- • South Korean brokerages are accelerating crypto acquisitions under current regulatory frameworks after repeated delays to STO legislation, with firms citing urgency to avoid falling behind global competitors and competing with offshore platforms generating trillions of won from Korean users.
- • Coinone's financial performance shows operational challenges, with 2025 revenue of $31.4 million (up 3% year-over-year) offset by a $4.3 million operating loss and sharp decline in net income to $1.9 million from $10.8 million in 2024, driven by $5.9 million in crypto valuation losses.
- • Proposed regulatory caps on major shareholders' stakes in domestic crypto exchanges at 15-20% may force ownership restructuring; Coinone CEO Cha Myung-hoon currently controls 53.44%, potentially necessitating the sale of significant equity to comply with future rules.
Summary
South Korea's major securities firms are executing an unprecedented consolidation of the domestic crypto exchange sector, driven by stalled regulatory progress on tokenized securities and competition from offshore platforms. Mirae Asset Group, the country's largest securities firm, completed its strategic pivot by acquiring Korbit for $92 million in February 2026, securing 92% ownership and board control. The deal enables Mirae Asset to integrate crypto exchange infrastructure with its existing brokerage, digital bonds, and tokenized securities capabilities—positioning the firm to offer integrated asset platforms similar to global competitors like Robinhood that combine equity and crypto trading in single interfaces.
Korea Investment & Securities, an $8.5 billion securities giant, has entered early-stage talks to acquire approximately 20% of Coinone, the country's third-largest exchange by trading volume. According to The Korea Herald, the brokerage is engaging with financial regulators and lawmakers to clear a path for the transaction, mirroring Mirae Asset's pre-acquisition regulatory coordination. No price has been finalized, though industry observers expect the Korbit acquisition to serve as a valuation benchmark. Coinone CEO Cha Myung-hoon currently holds 53.44% of the exchange; proposed legislation to cap major shareholder stakes at 15-20% may force ownership restructuring and create opportunities for institutional investors to acquire stakes without threatening existing control.
The strategic pivot reflects frustration over delays in security token offering (STO) legislation, which has repeatedly stalled after earlier optimism. As one industry official noted, "STO-related teams are in a holding pattern as legislation has yet to pass. Firms are instead accelerating efforts in crypto." With STO initiatives effectively blocked, brokerages are prioritizing crypto acquisitions as executable alternatives under the current regulatory framework while also observing that global exchanges like Binance are generating trillions of won in revenue from Korean users through offshore operations.
Coinone's financial performance presents a mixed picture. The exchange reported 2025 revenue of $31.4 million, up 3% year-over-year and entirely driven by trading fees, but posted a $4.3 million operating loss roughly in line with the prior year. Net income declined sharply to $1.9 million from $10.8 million in 2024, driven by $5.9 million in crypto valuation losses (compared to $138,000 a year earlier). Total assets also contracted 18.7% to $186.1 million as cash reserves fell significantly, underscoring the operational challenges facing even established domestic exchanges. Additional consolidation is expected: Naver Financial and Upbit operator Dunamu have approved a merger, while Binance received final approval to acquire Gopax, indicating that crypto sector restructuring extends across multiple major players.
Korea Investment & Securities, an $8.5 billion securities giant, has entered early-stage talks to acquire approximately 20% of Coinone, the country's third-largest exchange by trading volume. According to The Korea Herald, the brokerage is engaging with financial regulators and lawmakers to clear a path for the transaction, mirroring Mirae Asset's pre-acquisition regulatory coordination. No price has been finalized, though industry observers expect the Korbit acquisition to serve as a valuation benchmark. Coinone CEO Cha Myung-hoon currently holds 53.44% of the exchange; proposed legislation to cap major shareholder stakes at 15-20% may force ownership restructuring and create opportunities for institutional investors to acquire stakes without threatening existing control.
The strategic pivot reflects frustration over delays in security token offering (STO) legislation, which has repeatedly stalled after earlier optimism. As one industry official noted, "STO-related teams are in a holding pattern as legislation has yet to pass. Firms are instead accelerating efforts in crypto." With STO initiatives effectively blocked, brokerages are prioritizing crypto acquisitions as executable alternatives under the current regulatory framework while also observing that global exchanges like Binance are generating trillions of won in revenue from Korean users through offshore operations.
Coinone's financial performance presents a mixed picture. The exchange reported 2025 revenue of $31.4 million, up 3% year-over-year and entirely driven by trading fees, but posted a $4.3 million operating loss roughly in line with the prior year. Net income declined sharply to $1.9 million from $10.8 million in 2024, driven by $5.9 million in crypto valuation losses (compared to $138,000 a year earlier). Total assets also contracted 18.7% to $186.1 million as cash reserves fell significantly, underscoring the operational challenges facing even established domestic exchanges. Additional consolidation is expected: Naver Financial and Upbit operator Dunamu have approved a merger, while Binance received final approval to acquire Gopax, indicating that crypto sector restructuring extends across multiple major players.
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