Major Korean Brokerage Pushes into Crypto Exchange Market as Regulatory Pressure Mounts

South Korean brokerage Korea Investment & Securities (KIS) is actively exploring a potential stake acquisition in Coinone, one of the nation's largest crypto exchanges, according to Korean media reports and official company statements. While both parties acknowledge preliminary discussions with regulators and politicians, neither has confirmed a finalized deal—yet this move signals serious intent in a rapidly consolidating market.

The Regulatory Catalyst

The timing isn't coincidental. South Korea's government and ruling party agreed on March 4 to impose a 20% ownership cap on major shareholders in domestic crypto exchanges. This regulatory framework would give exchanges three years to restructure ownership if the proposal becomes law—essentially forcing major stakeholders to divest significant holdings.

Coinone Chairman Cha Myung-hoon currently controls approximately 53.44% of the exchange, making him a prime candidate for divestment under the new rules. A partial stake sale to KIS would position Coinone ahead of the regulatory curve while allowing Cha to retain management control even after reducing his equity position.

The Consolidation Game

This isn't KIS acting alone. The crypto brokerage landscape in South Korea is undergoing rapid consolidation, with major financial institutions making bold moves:

• •Mirae Asset Group already secured a controlling stake in crypto exchange Korbit (disclosed in February)
• •Naver Financial committed to an approximately $10.3 billion all-stock acquisition of Dunamu, which operates Upbit—though that deal hit regulatory turbulence and saw trading volume headwinds on March 30

KIS enters this arena from a position of strength. The brokerage posted a net profit exceeding 2 trillion won (approximately $1.3 billion) in 2025, making it a credible buyer with serious capital capacity, according to Hankyung reporting.

Market Implications for Crypto Trading

For traders and portfolio managers monitoring this space, these institutional moves signal something crucial: South Korea's regulatory environment is forcing traditional finance into the crypto sector. When major brokerages can't avoid crypto anymore, they're not just dabbling—they're building integrated platforms.

The proposed 20% cap essentially democratizes exchange ownership, preventing single individuals from maintaining absolute control over critical market infrastructure. This creates opportunities for institutional players like KIS and Mirae Asset to enter at favorable valuations while simultaneously meeting regulatory requirements.

The Naver Financial-Dunamu deal delay matters here too. Regulatory reviews are tightening, and trading volumes matter in valuation metrics. KIS likely observed these delays and adjusted its approach accordingly—moving with regulators rather than against them.