Coinbase is evaluating a potential stake in Coinone, South Korea’s third-largest cryptocurrency exchange, as discussions about a possible share sale involving its majority shareholder gain traction. This comes as the South Korean crypto market experiences increased activity, spurred by both domestic and international players.
Speculations Rise Around Coinone Amid Leadership Changes
Speculations regarding a sale of Coinone have intensified following the return of its former CEO, Cha Myung-hoon, to the forefront of management just four months after stepping down. Observers note that Cha’s return might facilitate a stake transaction, particularly given his controlling position in the company.
Despite the buzz, Coinone has not confirmed plans for a complete sale. Reports suggest, however, that the exchange is exploring various options regarding ownership and may consider partial sales or attracting new strategic investors.
Valuation Pressured by Losses Despite Technological Upgrades
Cha’s return aims to boost Coinone’s technological competitiveness as it approaches a double-digit market share. The company is investing in areas like artificial intelligence to enhance its products and infrastructure. However, ongoing losses continue to impact its valuation, which, according to Seoul Economic Daily, stood at 75.2 billion won (approximately $52 million) at the end of Q3, below Com2uS’s acquisition cost.
Stakeholders are particularly focused on Com2uS, a South Korean gaming group that acquired a 38.42% stake in Coinone between 2021 and 2022, suggesting that any changes in ownership structure could have market implications.
Coinbase’s Visit: Seeking Compliant Partnerships in Korea
Industry sources indicate that Coinbase plans to visit South Korea this week to meet with local players, including Coinone, in search of partnerships that adhere to Korean regulations. Such a strategic investment could provide a more feasible path for foreign platforms to collaborate with licensed local exchanges instead of establishing independent operations.
This potential partnership arises amid an evolving landscape for South Korean exchanges, where global players are seeking regulated entry points into one of Asia’s most scrutinized crypto markets.
Surge in Activity Among South Korean Crypto Platforms
Coinbase’s reported interest coincides with a surge in transactions within the South Korean crypto sector, driven by the value of licensed platforms and their access to trading infrastructure in won. Major financial groups and tech players are exploring market options, with consolidation becoming a key theme.
Recent regulatory approvals, such as Binance’s long-sought acquisition of GOPAX, have further fueled acquisition interest. In another notable development, Naver Financial has agreed to acquire Dunamu, operator of market leader Upbit, while local reports suggest that Mirae Asset Securities is pursuing Korbit.
Coinone is attempting to differentiate itself by launching innovative product features, including a flexible Bitcoin staking service that allows users to earn rewards without locking their assets. As the regulatory landscape shifts, any partnership with Coinbase may provide a critical foothold for navigating South Korea’s competitive crypto exchange environment.
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