Kiwoom Securities has put its plan to buy a stake in Bithumb on hold. The South Korean securities firm has reportedly stopped pushing the deal forward, according to an exclusive report from Byline Network. A company official, speaking anonymously, said internal sentiment has shifted against the acquisition. The main reasons are Bithumb’s complex governance structure and the growing financial weight of the transaction. Kiwoom did not confirm the report when asked for comment.
What we know about the deal
The proposed stake purchase was seen as a way for Kiwoom to enter the digital asset space. Bithumb is one of South Korea’s biggest cryptocurrency exchanges. But it has been under regulatory scrutiny for years, and ownership disputes have not helped. Those problems made Bithumb’s governance messy. People familiar with the discussions say the deal structure raised serious questions. There were unclear decision-making processes and possible liabilities. Those concerns made it hard for Kiwoom to feel comfortable moving forward.
Why this matters for the crypto market
This pause could be a sign that institutional interest in South Korean crypto exchanges is cooling. The industry has been dealing with tighter rules and market swings. If a major securities firm like Kiwoom steps back, other traditional financial companies may think twice. Bithumb might also feel the impact. Its valuation could suffer, and it may have a harder time finding strategic partners. Analysts have said governance remains a big deterrent for traditional finance.
The situation also shows the friction between old-school finance and the crypto world. For crypto adoption to grow, exchanges need clearer governance and more regulatory clarity. South Korean financial firms are being cautious. They are balancing potential growth with compliance risks. This is not an easy balance. Some deals will stall. Some will fall apart entirely.
What happens next
The deal is not officially canceled. But the internal hesitation suggests it may not move forward anytime soon. Bithumb and Kiwoom have not made formal announcements. Watchers will likely keep an eye on any public statements. For now, the pause is a reminder that big investment decisions in crypto are rarely simple. Even well-funded firms can walk away when the risks become too heavy.
