Coinone has moved to shut down chatter that Coinbase is seeking an equity foothold in South Korea, a market prized for deep retail liquidity and tight oversight. The speculation followed a Jan. 25 report by Seoul Economic Daily that Chairman Cha Myung-hoon was exploring a partial stake sale and that Coinbase was among potential buyers, with Coinbase executives scheduled to visit Korea this week to meet major local players.
Coinone said the circulating stake-sale reports were “completely groundless,” while noting it has received various collaboration proposals from overseas exchanges and domestic companies and is in contact with multiple parties to review business expansion possibilities. The company framed the conversations as partnership scouting, not a transaction in motion. It added it remains open to partnerships, but stressed that no concrete plans or negotiations are underway, underscoring how hard it remains for global exchanges to operate inside Korea’s regulatory perimeter at present.
Markets price in deal optionality
Even with the rebuttal, market participants reacted sharply to the initial headlines. Com2uS Holdings, Coinone’s second-largest shareholder with a 38.42% stake, jumped more than 17% on Monday, briefly touching 26,300 won before closing at 23,850 won. The price action highlights how sensitive local equities can be to M&A narratives, especially as Korea’s exchange landscape enters a consolidation cycle. Investors are treating any foreign tie-up rumor as a catalyst in a sector-wide reshuffle.
The report situates the Coinone chatter alongside a broader restructuring wave: Naver Financial and Dunamu, operator of market leader Upbit, approved a merger via a comprehensive stock swap; Mirae Asset Securities is pursuing an acquisition of fourth-ranked Korbit; and Binance received final regulatory approval to acquire fifth-ranked Gopax. Korea’s market is highly concentrated, with Upbit and Bithumb together commanding over 97% of market share, amplifying deal optionality for smaller players as they seek scale, infrastructure, and regulatory cover.
Regulation tightens the strategic perimeter
Regulatory dynamics add another layer to the narrative and could reshape Coinone’s cap table regardless of any foreign interest. The Financial Services Commission has recommended capping major shareholder stakes at 15% to 20% in the second phase of virtual asset legislation, citing concentrated ownership at exchanges serving 11 million users. Chairman Cha holds 53.44% of Coinone through a personal 19.14% stake and holding company The One Group at 34.30%, meaning a cap would force meaningful dilution.
In practice, governance rules may be the real deal driver, not the Coinbase rumor mill. The ruling Democratic Party decided on Jan. 20 not to include the stake restriction in the current legislative push, but analysts said it could resurface if concentration or security concerns intensify. Official figures put Coinone near 1.5% market share, while CoinGecko estimates about 6.6% in January. For Coinbase, a local partner would provide regulatory cover, but Coinone says no.