Mirae Asset in Talks to Acquire Korbit for Up to $100M, Signaling Institutional Shift in South Korea’s Crypto Market

• Mirae Asset May Pursue Korbit Acquisition Amid Interest in Legitimized Crypto Infrastructure
• Mirae Asset in Talks to Buy Korbit, Reflecting Traditional Finance’s Increasing Importance in Korean Crypto Market

Mirae Asset Group, a leading financial conglomerate in South Korea, is allegedly engaged in active acquisition talks with Korbit, the fourth-largest cryptocurrency exchange in the country, with plans to buy the company at a price between 100 and 140 billion KRW, or around $70 million and $100 million. The acquisition push is part of efforts initiated by Mirae Asset Consulting, the company’s non-financial subsidiary. It has already signed a memorandum of understanding with the main shareholders of Korbit, namely NXC, which holds 60.5% of the company, and SK Planet, with a holding of about 31.5%. However, as yet, there are no official statements from either side regarding the proposed acquisition.

The reasons why the agreement is structured this way seem connected with the fact that the regulations of the South Korean government are very strict when it comes to the separation between the traditional financial services sector and the virtual asset sector. As reported at the end of December by The Block, the negotiations are being handled not by the group’s financial institutions, which are regulated, but by another company, Mirae Asset Consulting, which seems to have the strategy of being regulated first before delving into the crypto market.

Introduction to Korbit’s Legacy

Korbit was founded in the year 2013, and it is a very special case in the history of the crypto market in South Korea, being the first crypto exchange and the first platform that enabled Bitcoin-KRW trades.  Over the years, the influence of Korbit has gradually diminished as the volume of traded business has concentrated on bigger players such as Upbit and Bithumb. Currently, the volume stands at less than 1% for Korbit on the domestic market. Despite losing influence, Korbit operates as a completely compliant and regulated marketplace with clearly defined governance, thus offering the best way for traditional financial players such as Mirae Asset to join the crypto market with the least risk.

Implications on Traditional Finance & Crypto

These reports show that the trend of traditional financial institutions entering digital assets through legitimate means continues to unfold. The Virtual Asset User Protection Act in South Korea has put pressure on exchanges, further emphasizing the importance of using legitimate platforms that comply with regulations and standards. 

Although there is some level of uncertainty regarding the regulatory approval and Korbit’s necessity to increase its trading volume, the fact that talks are taking place indicates that there is more integration happening between the traditional financial industry and the cryptocurrency sector. The acquisition will prove that the regulated exchanges are strategically viewed as assets by the traditional financial industry.

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