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

Coinone, South Korea’s third-largest cryptocurrency exchange, has denied reports that it is in talks to sell a stake to Coinbase, throwing cold water on speculation that the US exchange giant is making a fresh push into Korea’s liquidity-rich market.

The denial underscores how difficult it remains for global exchanges to crack Korea’s tightly regulated crypto sector, even as domestic players undergo rapid consolidation.

‘Completely Groundless’

The rebuttal came after Seoul Economic Daily reported on Jan. 25 that Coinone Chairman Cha Myung-hoon was exploring a partial stake sale, with Coinbase identified as a potential buyer. The report noted that Coinbase executives were scheduled to visit Korea this week to meet with major local players, including Coinone.

“The circulating reports about a stake sale are completely groundless,” a Coinone spokesperson told local media. “While it is true that we have received various collaboration proposals from overseas exchanges and domestic companies, we are simply in contact with multiple parties as part of reviewing business expansion possibilities. Interpreting this as a stake sale is inconsistent with the facts.”

The company added that while it remains open to partnerships with overseas exchanges and domestic firms, no concrete plans or negotiations are currently underway.

Market Reaction

Despite the denial, markets moved sharply on the initial reports. Com2uS Holdings, Coinone’s second-largest shareholder with a 38.42% stake, saw its shares surge by more than 17% on Monday. The stock briefly touched 26,300 won before closing at 23,850 won.

The sharp reaction reflects broader market awareness. Korean crypto exchanges have become attractive acquisition targets amid an industry-wide consolidation wave.

Regulatory Pressure Looms

The timing of the stake sale speculation is notable given Korea’s evolving regulatory landscape. The Financial Services Commission (FSC) has recommended capping major shareholder stakes at 15-20% as part of the country’s second-phase virtual asset legislation, citing concerns over concentrated ownership at exchanges serving 11 million users.

Chairman Cha currently holds 53.44% of Coinone through his personal stake (19.14%) and holding company The One Group (34.30%). Should such regulations take effect, he would be required to significantly reduce his ownership regardless of any Coinbase involvement.

However, the ruling Democratic Party decided on Jan. 20 not to include the stake restriction in the current legislative push, though analysts note the measure could resurface if market concentration issues or security concerns escalate.

Consolidation Wave

The Coinone speculation comes amid unprecedented restructuring in Korea’s crypto exchange sector. Naver Financial and Dunamu, the operator of the market leader Upbit, have approved a merger via a comprehensive stock swap. Mirae Asset Securities is pursuing an acquisition of the fourth-ranked Korbit. Binance recently received final regulatory approval to acquire fifth-ranked Gopax.

Korea’s crypto market remains highly concentrated, with Upbit and Bithumb together commanding over 97% of the market share, according to government figures. Coinone trails at approximately 1.5% by official count, though private estimates from CoinGecko suggest its share may have climbed to around 6.6% in January.

For Coinbase, which has long eyed the Korean market as one of the world’s most active retail trading hubs, a local partnership would provide regulatory cover and established infrastructure. But Coinone’s firm denial suggests any such arrangement remains far from certain.