Coinbase is weighing a potential equity investment in Coinone, South Korea’s third-largest crypto exchange, as the platform explores options that could include selling part of its controlling shareholder’s stake, according to local media and industry sources.

A local outlet reported on Sunday that Coinone has put itself on the market and is discussing scenarios tied to Chairman Cha Myung-hoon’s holdings.

Cha controls 53.44% through his personal stake and his holding company, The One Group.

The possible investment has quickly gained attention because it comes as South Korea’s crypto exchange sector enters a new phase of dealmaking, with major financial groups and global platforms looking for ways to secure access to regulated won-based trading infrastructure.

Coinone sale speculation grows after leadership shift

Sale chatter around Coinone has picked up after Cha returned to frontline management just four months after stepping down as chief executive.

Some observers have interpreted his return as a move that could support a stake transaction, particularly as the discussions reportedly link directly to his controlling position.

Coinone has not confirmed that it is pursuing a full sale.

However, the reports suggest it is exploring multiple structures around ownership, leaving the door open for partial stake sales, new strategic investors, or broader shifts in shareholder control.

Losses weigh on valuation even as tech upgrades accelerate

Coinone has said Cha stepped back into management to sharpen the exchange’s technological competitiveness as it nears a double-digit market share.

The company has highlighted investment in areas such as artificial intelligence as part of its product and infrastructure buildout.

At the same time, Coinone’s losses have continued to pressure its valuation.

Seoul Economic Daily put Coinone’s book value at 75.2B won, or about $52M, at the end of the third quarter, below Com2uS’s reported acquisition cost.

Ownership attention has also turned to Com2uS, the South Korean gaming group that accumulated a 38.42% stake in Coinone between 2021 and 2022.

The size of that holding means any transaction involving Coinone’s control structure would likely be closely watched by market participants tracking how shareholder dynamics may evolve.

Coinbase visit highlights hunt for Korea-compliant partners

Industry sources say Coinbase plans to visit South Korea this week and meet major local players, including Coinone, as it looks for partners to build products aligned with Korean rules.

The reported trip has added momentum to speculation, as South Korea remains one of the world’s most active retail crypto markets but also one of the hardest for foreign firms to enter directly.

In that context, strategic investment can offer a more workable path, allowing overseas platforms to collaborate with licensed local exchanges rather than attempting to build a standalone operation from scratch.

The reports have also circulated widely in the crypto community.

Korea crypto exchange deal wave gathers pace

Coinbase’s reported interest comes as dealmaking accelerates across South Korea’s crypto exchange sector, driven by the value of licensed platforms and their access to won-denominated trading rails.

Traditional finance groups and big tech players have been circling the market, as consolidation becomes a defining theme.

Regulators recently cleared Binance’s long-running effort to take over GOPAX, a move that has helped fuel a wider rush of takeover interest.

Naver Financial agreed to acquire Dunamu, the operator of market leader Upbit, in an all-stock deal, while local media have also reported Mirae Asset Securities is pursuing Korbit.

Coinone has attempted to stand out by building new product features.

In Aug. 2025, it launched what it called the country’s first flexible Bitcoin staking service, allowing users to earn rewards without locking up their holdings.

Still, a possible Coinbase tie-up is emerging at a time when South Korea’s exchange landscape is shifting quickly, and when global players are searching for regulated entry points into one of Asia’s most closely watched crypto markets.

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Coinbase weighs Coinone stake as South Korea crypto deal activity surges

Source: https://coinjournal.net/news/coinbase-weighs-coinone-stake-as-south-korea-crypto-deal-activity-surges/

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South Korea is preparing to reopen its digital asset market to corporate money, marking a major shift after nearly a decade of tight restrictions.

Financial regulators are updating long-standing guidelines that have barred companies from holding crypto assets since 2017, a period defined by concerns over money laundering and market instability.

The proposed changes would allow listed companies and professional investors to allocate a limited portion of their balance sheets to cryptocurrencies.

The move signals a recalibration of policy as Seoul seeks to strengthen its digital finance ecosystem while keeping risks contained through strict guardrails.

Corporate access returns

According to a report by the Financial Services Commission, legal entities will be permitted to invest up to 5% of their equity capital in crypto assets.

The information was reported by the Seoul Economic Daily.

Regulators are expected to release the final version of the guidelines in January or February.

Once in place, companies will be able to engage in virtual currency transactions for investment and financial purposes, ending a nine-year prohibition.

The FSC first outlined a phased easing of corporate crypto rules in February 2025 and shared the latest draft with its crypto working group on Jan. 6.

The approach reflects a gradual opening rather than a wholesale liberalisation.

Tight limits on assets

The planned framework places clear limits on where and how companies can invest.

Corporate purchases will be restricted to the top 20 crypto assets by market capitalisation, narrowing exposure to the most liquid and widely traded tokens.

Transactions will also be confined to South Korea’s five largest regulated exchanges, reinforcing oversight and compliance standards.

The inclusion of dollar-pegged stablecoins remains unresolved.

The report said regulators are still debating whether assets such as Tether’s USDT should be permitted under the new rules.

These conditions are designed to address the same financial crime risks that prompted the original ban, while recognising that the domestic market has matured since 2017.

Market impact expectations

The reopening of corporate access could unlock significant capital flows into crypto markets.

Seoul Economic Daily noted that the scale of potential investment runs into tens of trillions of won.

By way of illustration, the report pointed to internet giant Naver, which holds around 27 trillion won in equity capital.

Under the proposed cap, the company could theoretically deploy funds equivalent to roughly 10,000 Bitcoin.

Beyond direct market inflows, the change could alter corporate strategy.

Large South Korean firms have previously invested in digital assets overseas to avoid domestic restrictions.

Easing local rules may redirect that activity back home, supporting blockchain startups, digital asset treasuries, and related infrastructure.

Broader digital currency strategy

The corporate crypto shift sits alongside a wider push into digital currencies.

The government has outlined plans to execute 25% of national treasury transactions through a central bank digital currency by 2030 as part of its 2026 Economic Growth Strategy.

The government also plans to introduce a licensing regime for stablecoin issuers.

Under the proposal, issuers would need to maintain 100% reserve backing and provide legally guaranteed redemption rights for users.

Together, these measures suggest South Korea is seeking to integrate crypto assets, stablecoins, and a CBDC into a single regulatory framework rather than treating them as isolated experiments.

The post South Korea moves to reopen corporate crypto investing after long freeze appeared first on CoinJournal.

South Korea moves to reopen corporate crypto investing after long freeze

Source: https://coinjournal.net/news/south-korea-moves-to-reopen-corporate-crypto-investing-after-long-freeze/

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).

South Korea’s push to formalise crypto regulation has slowed again, with authorities confirming that the Digital Asset Basic Law will not be submitted until 2026.

The delay highlights deep divisions over how stablecoins should be supervised in one of Asia’s most active digital asset markets, even as crypto products become more tightly linked to the wider financial system.

The setback does not reflect a lack of interest in regulation.

Instead, it underlines how complex stablecoin oversight has become for policymakers, balancing innovation, financial stability, and monetary control.

With no agreement yet on who should hold ultimate authority, lawmakers have opted to pause rather than advance a bill with unresolved structural gaps.

Purpose of the proposed law

The Digital Asset Basic Law is intended to act as the backbone of South Korea’s crypto framework.

A core aim is investor protection, achieved by holding digital asset operators to stricter legal standards than before.

One of the most significant proposals is the introduction of no-fault liability, which would make operators responsible for user losses even if negligence cannot be proven.

Another pillar of the bill focuses on reducing systemic risk from stablecoins. The draft requires issuers to maintain reserves exceeding 100% of the circulating supply.

These reserves must be held at banks or approved institutions, with clear separation from the issuer’s own balance sheet.

The structure is designed to limit contagion risks if a stablecoin issuer fails.

Stablecoins and regulatory control

Stablecoins have emerged as the main fault line in the debate. While regulators broadly agree that stronger oversight is necessary, they remain split on who should enforce reserve rules and supervision.

The Financial Services Commission and the Bank of Korea have yet to align on how responsibilities should be divided.

These disagreements have complicated decisions around licensing, enforcement powers, and the treatment of reserve assets.

Rather than pushing through a compromised framework, authorities have delayed the bill to allow further coordination between financial regulators and monetary authorities.

Market uncertainty grows

The postponement has not triggered an immediate market reaction, but it adds another layer of uncertainty for crypto firms operating in South Korea.

Exchanges, payment providers, and stablecoin issuers continue to expand in an environment where long-term regulatory expectations remain unclear.

Uncertainty can have practical effects.

Firms may slow product launches, delay investment decisions, or consider shifting certain operations to jurisdictions with clearer rules.

For investors, the absence of a completed framework complicates assessments of risk and compliance.

Politics and monetary strategy

Political dynamics are also shaping the timeline. The ruling Democratic Party is now working to merge several lawmaker proposals into a revised digital asset bill.

At the same time, strategic concerns around monetary sovereignty are becoming more prominent.

President Lee Jae Myung has identified a Korean won-backed stablecoin as a national priority, arguing that it could counter the growing dominance of US dollar-linked stablecoins in global crypto markets.

These ambitions increase pressure on regulators to ensure that any framework aligns with broader monetary policy goals.

The delayed Digital Asset Basic Law is meant to represent the second phase of South Korea’s crypto regulation.

The first phase, already in force, targeted unfair trading practices.

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South Korea delays digital asset law as stablecoin oversight divides regulators

Source: https://coinjournal.net/news/south-korea-delays-digital-asset-law-as-stablecoin-oversight-divides-regulators/

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South Korean authorities have uncovered one of the country’s largest cyber fraud cases, dismantling an international hacking ring that stole nearly 39 billion won from high-profile victims.

The Seoul Metropolitan Police Agency confirmed that the group exploited weak security across government, IT, and financial platforms to steal data from 258 people, which was later used for large-scale SIM-swap fraud.

The suspects targeted wealthy business leaders, lawyers, athletes, crypto investors, and celebrities, including BTS member Jungkook, who narrowly avoided losing 8.4 billion won worth of HYBE stock.

Investigations revealed the cross-border scale of the operation, stretching from Seoul to Bangkok.

Hackers exploited data from 258 victims

Between July 2023 and April 2024, the ring infiltrated six public and financial portals with weak protections. The breaches exposed personal details such as resident registration numbers and financial verification data.

Police said 258 victims were affected, including 75 business executives, 11 lawyers and officials, 12 celebrities, six athletes, and 28 virtual asset investors.

Collectively, the group accessed accounts with combined holdings estimated at 55.22 trillion won, with some single accounts exceeding 12 trillion won.

To execute the fraud, the hackers created 118 mobile accounts under the names of 89 victims. These accounts were then used to bypass security checks and siphon money directly from bank and crypto wallets.

In total, 16 victims lost 39 billion won, while financial institutions managed to block a further 25 billion won in attempted thefts. The largest confirmed loss involved 21.3 billion won in virtual assets.

BTS star Jungkook targeted with 8.4 billion won attempt

The scheme gained widespread attention after police confirmed that BTS member Jungkook was one of the intended victims.

Hackers attempted to move 8.4 billion won worth of HYBE stock under his name, but the suspicious transaction was blocked before funds left the account.

Officials credited banks and agencies with flagging abnormal activity, preventing Jungkook’s potential losses. In total, police managed to recover 12.8 billion won through swift interventions, including freezing accounts and stopping withdrawals.

However, investigators highlighted that the case exposed a critical weakness in South Korea’s non-face-to-face authentication systems, which the group manipulated to carry out its operations.

Arrests across South Korea, China, and Thailand

The investigation began in September 2023, when unauthorised mobile phone activations were first reported to Namdaemun Police Station. Over the following months, 16 suspects were identified and detained.

The ringleaders, identified only as Mr. A (35) and Mr. B (40), moved frequently between China and Thailand. Both were eventually arrested in Bangkok in May after Seoul police collaborated with Thai authorities and Interpol.

Mr. A was extradited to South Korea on August 22 and faces 11 charges, including large-scale fraud and hacking, while Mr. B remains in custody in Thailand pending extradition.

Three suspects are still in detention in South Korea, while the rest face prosecution for fraud, hacking, and violating the Information and Communications Network Act.

Police noted that the outcome could have been far worse had the group been allowed to continue operations.

Crypto scams rising in South Korea

The case adds to a growing wave of cybercrime linked to cryptocurrency in South Korea. On May 15, Jeju police arrested 25 suspects for running fake investment schemes that defrauded 48 people of 734 million won.

In a separate incident, a police officer in Incheon was charged with embezzling 700 million won from investors in a bogus crypto project.

Meanwhile, Park “Jonbur Kim,” known as the “Coin King,” is on trial for manipulating the Artube coin, which caused investor losses of 68 billion won.

Authorities are also investigating large-scale money laundering. Prosecutors say unlicensed brokers funnelled 943.4 billion won through Neteller Pay between 2019 and 2024, earning 26 billion won in commissions.

Assets worth 4.4 billion won in Ethereum have since been seized from hidden wallets.

Cases have even extended into romance scams, with a man in his 50s losing 100 million won in July, and celebrity-linked fraud, with actress Hwang Jung-eum facing trial for embezzling 4.3 billion won from her agency for crypto purchases.

Despite these risks, South Korea remains one of the world’s most active crypto markets. Chainalysis data shows $130 billion in inflows in 2024, with over 10.8 million Koreans trading digital assets.

More than 10,000 investors hold balances above 1 billion won, especially among traders in their 20s. Regulators are now preparing to approve the nation’s first spot crypto ETFs and a won-pegged stablecoin, as major exchanges expand custody services to institutions.

The post South Korea cracks down on crypto scam after BTS star Jungkook hit in 39 billion hack appeared first on CoinJournal.

South Korea cracks down on crypto scam after BTS star Jungkook hit in 39 billion hack

Source: https://coinjournal.net/news/south-korea-cracks-down-on-crypto-scam-after-bts-star-jungkook-hit-in-39-billion-hack/