Amid tighter regulations in South Korea, Vidente considers controlling stake in Bithumb
South Korea’s anti-money laundering unit recently approved Bithumb‘s request to activate crypto services. Shortly after, local reports claims that the largest shareholder of the stock market is considering a majority stake.
Not to forget, Bithumb is one of the “big four” crypto operators, just behind the largest Upbit exchange. However, things have changed since he received the green light from the Financial Intelligence Unit (FIU). Previously, Vidente was would have plans to unload its Bithumb holdings.
However, given the growing business, the Korea-based venture capital firm is interested in adding 17% to its existing 32.44% stake. In recent months, South Korea’s regulatory reshuffle had also provided the larger Upbit exchange with some sort of monopoly advantage.
This had an estimated hold over 88% of the market. Well, experts now believe that Bithumb, as the country’s second largest cryptocurrency exchange, will be able to break that dominance. Sources predicted that by the first quarter of next year, Vidente will increase its liquidity to acquire the aforementioned 17%. Another source from the local newspaper also claims,
“There is a strong possibility that Morgan Stanley will invest in Vidente.”
thus giving exposure to US investment bank Morgan Stanley in the Korean crypto market.
That said, the government is also developing new regulations framework at the end of the current year. If reports are to be believed, watchdogs are being put in place to hold illicit cryptocurrency traders criminally accountable according to the law. On this, the Financial Services Commission (FSC) has offers “A minimum prison sentence of one year and a fine of up to five times” the illegal earnings at the National Assembly’s National Policy Committee. That’s not all, winnings of more than five billion won could result in at least five years in prison.
Additionally, there are around 13 other proposals on the table, including taxes on NFTs and the start of a 20% crypto-tax. Another proposal aims to treat “the big four” Upbit, Bithumb, Coinone and Korbit as securities companies. Reports to predict that parliament is unlikely to discuss all of the proposals and the integrated legislation during the current session ending on December 9.