South Korea’s regulated cryptocurrency exchange, Coinone, is reportedly up for sale amidst growing interest from major players, including Coinbase. As the second-largest crypto market in the Asia-Pacific, South Korea presents significant opportunities for expansion.

Coinone’s Strategic Sale

The sale process initiated by Coinone involves the stake held by Chairman Cha Myung-hoon, who possesses a commanding 53.4% of the company. In addition, Com2uS, a local game development company, is also contemplating selling its 38.4% stake, acquired between 2021 and 2022. The value of Com2uS’s investment has decreased significantly, highlighting potential financial motivations behind the sale.

Coinone has confirmed ongoing discussions with both foreign exchanges and local financial institutions, though no final agreements have been reached. The move aligns with a broader trend of consolidation in South Korea’s cryptocurrency industry, marked by high-profile mergers and acquisitions.

Coinbase’s Strategic Interest

Coinbase, the largest US-based crypto exchange by trading volume, is reportedly interested in entering the South Korean market by investing in Coinone. This speculation is driven by the strategic importance of South Korea as a global digital asset hub, hosting 16.29 million crypto investors as of March 2025.

According to local reports, Coinbase plans to visit South Korea to explore potential partnerships and equity investments. Despite its global reach, Coinbase has not yet launched an exchange specifically regulated under South Korean law, making this potential move a significant step.

Market Implications

The potential sale of Coinone and the rumored involvement of Coinbase could reshape South Korea’s crypto landscape. The country has witnessed a series of notable transactions, including Binance’s acquisition of a majority stake in Gopax in October 2025 and Naver’s plans to acquire Upbit.

Such developments underscore the dynamic nature of the cryptocurrency market in South Korea, with both domestic and international players vying for influence. Investors and stakeholders should closely monitor these changes as they could signal shifts in market dynamics and regulatory landscapes.

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South Korea stands out as a major player, boasting the world’s second-largest crypto market where nearly one in three adults owns cryptocurrency. This remarkable statistic underscores the importance of Asia in the global crypto landscape.

A16z Crypto’s Strategic South Korea Office

The decision to open a South Korean office is part of a broader strategy to provide go-to-market support for portfolio companies. By doing so, a16z aims to accelerate growth, foster strategic partnerships, and build lasting communities throughout Asia. “Our expansion will offer invaluable support to companies looking to scale rapidly,” said Anthony Albanese, managing partner and COO of a16z crypto.

The firm has appointed Sungmo Park, formerly APAC lead at Monad and Polygon, to spearhead its efforts in the region. Park’s role will involve working closely with companies and founders to enhance market connectivity and promote crypto adoption across the Asia-Pacific region.

Sungmo Park’s Vision for A16z Crypto

Park expressed his dedication to supporting exceptional founders through a16z crypto. “We provide not just capital but also hands-on support to help them grow into transformative companies,” he shared in a post on X. Leveraging his extensive network and experience, Park is committed to helping a16z crypto’s founders navigate new markets and gain the regional knowledge necessary for scaling effectively.

A16z crypto, known for backing numerous blockchain startups such as Aptos, Dapper Labs, EigenLayer, and Yuga Labs, has raised over $7.6 billion across four funds. This financial strength positions the firm to make a significant impact in the Asian crypto scene.

The venture capital fund’s expansion into South Korea signifies a powerful endorsement of the region’s potential and a commitment to fostering innovation in the cryptocurrency industry.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.

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Mr. A, along with six other conspirators, allegedly swindled investors from October 2020 through January 2022. They held promotional gatherings in Gangnam, Seoul, purporting to operate businesses involved in artificial intelligence (AI) and cryptocurrency.

By promising an exorbitant 300% return on investments, the group successfully lured over 2,200 investors. The investment amounts ranged from around $770 up to $770,000. The plot followed the traditional Ponzi scheme pattern, using the capital from new investors to pay off the initial participants until it ultimately fell apart.

Mr. A employed family members and acquaintances to manage diverse aspects of the operation, including finance, IT, marketing, and investor recruitment. The police initiated an investigation in September 2022 after receiving complaints, which led to a two-month-long manhunt when Mr. A vanished before his pretrial hearing.

The arrest unveiled that Mr. A was on a two-year suspended sentence from July 2021 for a similar fraud plot when he started this new operation. A police spokesperson remarked, “Ponzi schemes are heinous crimes that warrant severe penalties, as they lead to numerous victims and make it impossible to recuperate losses.” The spokesperson also noted that many victims were aged between 50 and 70 and were not familiar with AI or crypto technologies.

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An official from the bank confirmed that they have also put a stop to the preparations for the second phase of their digital currency trial, which was initially set to take place in the fourth quarter of 2025.

FinanceMagnates.com previously reported that the initial phase of CBDC simulation testing, which included the evaluation of the currency’s basic functions such as creation, distribution, and issuance, was completed by South Korea’s central bank in December 2021.

The exploration of a digital rendition of the won began in April 2020 by the BoK. Despite this, they made it clear that these tests did not indicate an intent to launch a CBDC.

While the future of the country’s CBDC hangs in the balance, other nations continue to pilot digital currencies. To date, three countries – the Bahamas, Jamaica, and Nigeria – have successfully launched digital versions of their national currencies.

The decision to pause testing has been linked to a shifted focus towards the burgeoning stablecoin market, spearheaded by President Lee Jae Myung. He has expressed interest in supporting stablecoin-involved companies and has proposed a bill that would allow firms with equity as low as 500 million won (US$370,000) to launch won-pegged stablecoins.

South Korea is not the only country recognizing the potential of stablecoins. The recent initial public offering (IPO) of Circle, the company behind USDC, indicates a growing acceptance of these currency-pegged tokens. In the United States, the Senate recently approved the “Guiding and Establishing National Innovation for US Stablecoins” or GENIUS Act, which is now awaiting a House vote.

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The report, named “2050 Generation’s Virtual Asset Investment Trends”, demonstrates that the appeal of crypto investment transcends generational gaps. The highest participation rate is seen amongst individuals in their 40s at 31%, followed by those in their 30s at 28%, and finally, those in their 50s at 25%.

Remarkably, 78% of the participants in their 50s revealed they were utilizing crypto as a wealth accumulation method, with 53% preparing for their retirement using digital assets. The potential for growth, diversification, and structured savings plans are the main drivers encouraging investment in the crypto market.

Furthermore, 70% of the respondents showed interest in increasing their crypto investments in the future. 42% indicated they would invest more if traditional financial institutions were more involved in the crypto market, whilst 35% identified enhanced legal protections as a key factor in boosting their confidence.

The report also highlights a maturity in investment patterns, with a rise in regular purchases from 10% to 34% and mid-term trading increasing from 26% to 47%. Meanwhile, short-term trading has seen a slight decrease.

Investors are changing the way they gather information, with a decreased reliance on word-of-mouth and increased use of official exchanges and analytical platforms. Bitcoin (BTC) remains the top pick, with six out of ten investors holding BTC in their portfolios. However, as investor experience grows, many are diversifying into altcoins or stablecoins. NFTs and STOs are still niche, with nine out of ten investors sticking to coins.

Yoon Sun-young, a researcher at Hana Financial Research Institute, said, “Virtual assets play a significant role within investors’ portfolios. Investors anticipate legal institutionalization and the expansion of the role of the existing financial sector.” The restriction on linking multiple bank accounts with crypto exchanges is a major concern, with seven in ten investors expressing they would favor their primary bank if this rule were relaxed.

Despite the boom, concerns about market volatility (56%) and exchange or fraud risks remain prevalent. Last week, Eli Ilha Yune, chief product officer at Anzaetek, suggested that South Korea’s increase in crypto adoption is driven more by financial desperation and quick profit generation rather than optimism about blockchain technology.

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The stock of Kakaopay decreased by 10%, marking the steepest daily fall in more than a quarter. It closed at 84,200 won, equivalent to $62.01. The drop was preceded by forced suspensions of the stock’s trading on Tuesday and Thursday, triggered by warnings from the Korea Exchange about the “investment-risk” of the stock which had risen by 16% on Monday and 30% in the previous session.

Many market observers consider the stock to be overvalued due to it doubling in value over the past month. Traders are speculating that the new administration under President Lee Jae-myung may pave the way for won-based stablecoins in South Korea. Lee had expressed support for the institutionalization of cryptocurrency and other digital assets during his election campaign.

However, the Bank of Korea has issued warnings that stablecoins could present a threat to financial stability. Widespread adoption of digital currency and erosion of trust could lead to “coin runs,” similar to bank runs, where issuers may be compelled to liquidate assets due to a surge in redemption demands.

The Bank for International Settlements stated in its annual report earlier this week that while the demand for stablecoins has grown significantly, cryptocurrencies should not form the backbone of future monetary systems. According to the BIS report, stablecoins still fail to meet the necessary standards required for robust monetary arrangements.

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Post-election, Min Byeong-deok, a left-wing lawmaker and the director of digital assets during Lee’s campaign, proposed a law that would establish a licensing system and criteria for potential stablecoin issuers. Min explained to The Block that the use of dollar stablecoins directly causes capital outflows. However, facilitating overseas transactions with won-based stablecoins could minimize the conversion of domestic capital into foreign currencies.

The new administration aims to fortify the nation’s independence from foreign currency-based assets and expand the digital finance realm based on the Korean won. This move is anticipated to bring several economic advantages, including reduced trade costs, diversified foreign exchange risks, and increased global investment into the local economy.

Min explained that the objective is to foster an environment where private entities can issue won-pegged stablecoins and industries such as e-commerce platforms, game developers, and content creators can actively utilize these tokens.

Despite these potential benefits, some industry experts have raised concerns about the actual effectiveness of this initiative. Brian Hoonjong Paik, co-founder and CEO of bitcoin investment services firm SmashFi, suggested that issuing a won-backed stablecoin might not spur international demand and could even accelerate capital flight. The U.S. dollar dominates global foreign exchange reserves, while the Korean won falls into the category of nontraditional currencies.

On the other hand, Min contends that there is “real demand” for won-pegged stablecoins. He cited the growth of Korean services globally and argued that a won-based payment system could particularly construct a digital economic infrastructure for foreign users of Korean services or settlements with foreign merchants.

Min’s proposed legislation, the Digital Asset Basic Act, aims to reestablish South Korea’s presence in the global digital economy. This comes after a period of regulatory caution due to the fall of the TerraUSD stablecoin project, a South Korea-originated initiative. However, while South Korea is taking a step forward in the crypto world, some critics believe that the government should focus more on decentralization, self-custody, and monetary freedom, which are the core elements of blockchain technology.

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Despite the legal ambiguities surrounding stablecoin issuance due to South Korea’s constitution granting currency issuance rights exclusively to the Bank of Korea, Lee’s Democratic Party is progressively tilting towards innovation in the private sector. Min Byoung-dug, the head of the party’s Digital Asset Committee, has shown support for private sector-issued stablecoins and is set to propose the Digital Asset Basic Act, a comprehensive legislative framework for the cryptocurrency industry.

The tech giant Kakao backs Kaia’s interest in stablecoins. Kakao is the force behind a vast array of South Korea’s essential digital services, including messaging, navigation, and finance.

With the new administration in place, both traditional and cryptocurrency investors in the country have expressed their excitement. According to a survey by the Korea Chamber of Commerce and Industry, nearly 60% of respondents are planning to increase their crypto holdings under Lee’s administration. This optimism was reflected in the stock market on Monday, with payment companies Kakao Pay and competitor Danal both seeing a 29.9% increase.

Widely recognized as a potential beneficiary of a domestic stablecoin due to its digital wallet infrastructure and QR code payment system, Kakao Pay is the fintech subsidiary of Kakao. The latter’s Web3 subsidiary developed the Klaytn blockchain, which has now merged with the Japanese messaging service LINE-backed Finschia to form Kaia.

The increased confidence in the speedy advancement of stablecoin regulation is also mirrored in the stock market rally. Kim Yong-beom, formerly a vice finance minister and recently the head of research at blockchain venture capitalist firm Hashed, has been designated as President Lee’s chief policy advisor.

The proposed Digital Asset Basic Act by lawmaker Min is anticipated to include sections legalizing and supervising won-pegged stablecoins, indicating growing legislative support for the initiative.

Although Lee’s presidency has been overshadowed by his ongoing criminal trials, the Seoul High Court recently ruled that the President’s immunity from criminal prosecution applies, thus indefinitely delaying the trials. This ruling effectively paves the way for Lee’s administration to pursue its cryptocurrency agenda.

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Lee’s administration promises to remove the existing prohibition on spot Bitcoin ETFs and to sanction digital currency acquisitions for government-sponsored pension funds. It’s worth noting that Lee isn’t the first politician in South Korea to advocate for cryptocurrencies. Earlier leaders had promised to implement pro-crypto policies but faced numerous obstacles such as political instability and a sluggish South Korean market.

However, the global acceptance of cryptocurrencies has surged, with various countries now adopting crypto at both national and state levels. This shift has led the local digital asset community, including retail investors, to view this election as a significant victory for cryptocurrencies.

Dennis Porter, the founder of Satoshi Action Fund, lauded the election’s outcome as a testament to the public’s approval of the President’s cryptocurrency agenda. Porter, who was in South Korea for the election, hailed Lee’s commitment to allow a portion of South Korea’s $884 billion pension fund to be invested in Bitcoin and other cryptos as a significant win for the global crypto community.

Lee also plans to introduce a South Korean won-backed stablecoin to boost crypto usage in the country and curb capital flight. He aims to modernize the nation’s financial system and prevent capital outflow from depleting the nation’s wealth. Lee’s campaign centered around promoting Bitcoin spot ETFs, currently banned in South Korea.

The election, dubbed “judgment day” against the previous administration, saw a record voter turnout since 1997, with 80% of the nation’s 44.39 million eligible voters participating. With 99% of votes counted, the Democratic Party holds 49.3% of the vote, while the People Power Party holds 41.3%.

Lee, the Democratic Party’s frontrunner, has promised to unite the country post-election while addressing numerous challenges such as economic struggles, trade disputes, regional geopolitical conflicts, and a cost-of-living crisis. Lee has also pledged to bolster the economy by promoting businesses and potentially incorporating cryptocurrency regulations into the economic recovery plan.

With a significant election victory, Lee may have the freedom to implement his pro-crypto policies with minimal opposition. Lee’s commitment to stabilize the economy includes investments in artificial intelligence and national defense technology. He has also expressed his intent to endorse a won-backed stablecoin and allow public pension funds to invest in digital assets as part of a broader strategy to create a secure investment environment, especially for the younger generation.

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Lee emerged victorious in the election held on June 3, just half a year after the previous president, Yoon Suk-yeol, enacted martial law, leading to political turmoil. With 99% of the votes tallied by June 4, Lee, representing the center-left Democratic Party, garnered over 49% of the votes, outpacing his conservative People Power Party opponent, Kim Moon-soo, who secured 41% of the votes, according to the National Election Commission data.

As Reuters noted, nearly 80% of South Korea’s 44.4 million registered voters participated in the election, marking the highest voter turnout for a presidential election since 1997. Dennis Porter, the founder of Satoshi Action Fund, commented on this remarkable turnout while in South Korea on election day.

Lee has pledged to allow the country’s $884 billion national pension fund to invest in Bitcoin and other cryptocurrencies. Furthermore, he has supported the idea of launching Bitcoin exchange-traded funds (ETFs). Additionally, he plans to introduce a Korean Won-backed stablecoin to modernize the country’s financial system and prevent capital leakages.

Kim, his opponent, also ran a campaign supporting spot crypto ETFs and vowing to simplify regulations to foster crypto adoption. Bitcoin prices surged to 149,000 won (approximately $108,480) on South Korea’s top exchanges, Bithumb and Upbit, due to the so-called kimchi premium.

Lee takes office during a time of significant challenges for South Korea, including economic hardships due to increased living costs, ongoing trade negotiations with the US, and regional geopolitical tensions. It remains to be seen how high his crypto-related promises will rank in his list of priorities. However, he has pledged to “restore the economy” from day one.

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