SK Square Becomes Second-Largest Shareholder of Crypto Exchange Korbit (Report)

The investment company – SK Square – has reportedly invested 90 billion won ($75.5 million) to acquire a 35% stake at the digital asset exchange Korbit. By doing so, it became the second-largest shareholder at the South Korean trading venue since Nexon’s holding company – NXC – owns 48%.

SK Square Expands to The Crypto Universe

According to a local coverage, SK Square – a South Korean investment organization focused on ICT (information and communication technology) – joined the cryptocurrency bandwagon because it “believes its value of assets could grow just by holding shares of Korbit.”

The company further outlined that digital asset trading volume in the Asian country for the first nine months of 2021 has exceeded $3 billion. This amount is 12.6% larger than the trading volume of Kospi stocks (the Korean equivalent of the US S&P 500).

With the latest investment, Korbit – one of the leading cryptocurrency exchanges in South Korea – raised hopes to enhance its services and create a safer environment for those willing to trade bitcoin and alternative coins.

The trading venue also intends to introduce metaverse options by establishing a bridge between Ifland – a platform operated by SK Telecom – and Korbit Town – an ecosystem where users can deal with play-to-earn digital assets.

Yoon Poong-young – Chief Investment officer of SK Square – asserted this will not be the last crypto endeavor of his firm:

“SK Square will continue to invest in ICT areas that will lead future innovation, such as blockchain and metaverse, to become an attractive investment company.”

In turn, Korbit’s CEO – Oh Se-jin – believes the move “will maximize customer value by improving the quality of services” at the exchange. It would also connect users with the NFT space “through synergy with SK Square.”

Korbit Survived The Purge

Over the recent months, the Financial Intelligence Unit (FIU) – the monetary watchdog of South Korea – instructed local cryptocurrency exchanges to comply with anti-money laundering (AML) rules by registering with the regulator until September 24. The trading venues were also obliged to get a security certificate to ensure the safety of their services.

Of all the exchanges operating in South Korea, only four – Korbit, Upbit, Bithumb, and Coinone – successfully completed all requirements. On the other hand, around 40 platforms suspended their businesses as they could not meet the deadline. 28 exchanges obtained security certificates and will continue to operate without making won settlements.

Featured Image Courtesy of The Korea Herald