Coinbase Korea Speculation Grows, but Coinone Says No Deal in Sight

Coinone, South Korea’s third-largest cryptocurrency change, has denied stories that it’s in talks to promote a stake to Coinbase, throwing chilly water on hypothesis that the US change big is making a recent push into Korea’s liquidity-rich market.

The denial underscores how tough it stays for international exchanges to crack Korea’s tightly regulated crypto sector, at the same time as home gamers endure speedy consolidation.

‘Completely Groundless’

The rebuttal got here after Seoul Economic Daily reported on Jan. 25 that Coinone Chairman Cha Myung-hoon was exploring a partial stake sale, with Coinbase recognized as a possible purchaser. The report famous that Coinbase executives had been scheduled to go to Korea this week to fulfill with main native gamers, together with Coinone.

“The circulating stories a few stake sale are utterly groundless,” a Coinone spokesperson informed native media. “While it’s true that we now have acquired varied collaboration proposals from abroad exchanges and home firms, we’re merely in contact with a number of events as a part of reviewing enterprise enlargement potentialities. Interpreting this as a stake sale is inconsistent with the details.”

The firm added that whereas it stays open to partnerships with abroad exchanges and home companies, no concrete plans or negotiations are at the moment underway.

Market Reaction

Despite the denial, markets moved sharply on the preliminary stories. Com2uS Holdings, Coinone’s second-largest shareholder with a 38.42% stake, noticed its shares surge by greater than 17% on Monday. The inventory briefly touched 26,300 received earlier than closing at 23,850 received.

The sharp response displays broader market consciousness. Korean crypto exchanges have develop into enticing acquisition targets amid an industry-wide consolidation wave.

Regulatory Pressure Looms

The timing of the stake sale hypothesis is notable given Korea’s evolving regulatory panorama. The Financial Services Commission (FSC) has beneficial capping major shareholder stakes at 15-20% as a part of the nation’s second-phase digital asset laws, citing issues over concentrated possession at exchanges serving 11 million customers.

Chairman Cha at the moment holds 53.44% of Coinone by way of his private stake (19.14%) and holding firm The One Group (34.30%). Should such laws take impact, he could be required to considerably scale back his possession no matter any Coinbase involvement.

However, the ruling Democratic Party selected Jan. 20 to not embody the stake restriction in the present legislative push, although analysts observe the measure might resurface if market focus points or safety issues escalate.

Consolidation Wave

The Coinone hypothesis comes amid unprecedented restructuring in Korea’s crypto change sector. Naver Financial and Dunamu, the operator of the market chief Upbit, have approved a merger by way of a complete inventory swap. Mirae Asset Securities is pursuing an acquisition of the fourth-ranked Korbit. Binance just lately acquired final regulatory approval to amass fifth-ranked Gopax.

Korea’s crypto market stays extremely concentrated, with Upbit and Bithumb collectively commanding over 97% of the market share, in accordance with authorities figures. Coinone trails at roughly 1.5% by official depend, although personal estimates from CoinGecko recommend its share could have climbed to round 6.6% in January.

For Coinbase, which has lengthy eyed the Korean market as one of many world’s most energetic retail buying and selling hubs, an area partnership would supply regulatory cowl and established infrastructure. But Coinone’s agency denial suggests any such association stays removed from sure.

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