[비즈한국] Mirae Asset Consulting completed the acquisition of the virtual asset exchange Korbit last July. Following the acquisition, Korbit changed its company name to Digital X. It has been confirmed that the company simultaneously added blockchain-related activities to its business objectives. This move is interpreted as an effort by Mirae Asset Group to accelerate its blockchain business through Digital X. Mirae Asset Group Chairman Park Hyeon-joo has also made no secret of his high expectations for Digital X. However, the future is not guaranteed due to lingering variables, such as government discussions regarding ownership limits for virtual asset exchange shareholders.
Korbit Embraced by Mirae Asset, Expands Business Under New Name
It was confirmed on August 7 that Digital X added "Blockchain-based crypto asset trading and brokerage" and "Other information services related to blockchain technology" to its business objectives. In reality, Digital X has already been engaged in blockchain-based cryptocurrency trading. Many of the cryptocurrencies currently traded on Digital X's virtual asset exchange, 'Korbit,' are blockchain-based crypto assets. However, adding these as formal business objectives serves to clearly define the direction of the business moving forward.
Some in the financial sector anticipate that Digital X will expand its business into broader blockchain-related fields. As Digital X has operated a virtual asset exchange for some time, it possesses significant expertise in the blockchain sector.
Others foresee business expansion related to Security Token Offerings (STO), which are scheduled for legalization in February next year. Once STO is legalized, security tokens will be officially recognized as securities under the Capital Markets Act. This will allow real-world assets to be issued and traded in token form. Analysts suggest that the recent trend of financial firms investing in blockchain companies is largely driven by these STO prospects.
Mirae Asset Group had already signaled its intent to expand into areas like STO when it acquired Digital X. In a press release announcing the acquisition last July, Mirae Asset Group stated, "In line with the development of related systems such as the Digital Asset Basic Act and STO, we plan to introduce a variety of digital financial services in stages, including stablecoins, custody (digital asset storage and management services), Real World Assets (RWA), and digital payments and storage." The group added, "We will also provide comprehensive services, including research, investment information, asset custody, security, and operational support, for institutional and corporate clients, responding to the regulatory changes that are expanding corporate participation in the digital asset market."
- Security Token
- Securities issued in digital asset form using blockchain technology
Mirae Asset Group is also actively participating in the management of Digital X. Last July, Digital X appointed three executives from Mirae Asset as non-executive directors. Recently, Mirae Asset Consulting decided to inject an additional 50 billion KRW into Digital X in the form of a capital increase. Chairman Park Hyeon-joo also expressed his anticipation after the acquisition, stating, "Digital X will become the most powerful core pillar for realizing Mirae Asset 3.0."
A Digital X official commented on the addition of the new business objectives, saying, "We were effectively performing these activities (blockchain-based crypto asset trading and brokerage) previously as well. This addition should be seen as a way to align our formal objectives with the reality of our existing business."
Korbit's Low Market Share and Regulatory Burdens
However, the future for Mirae Asset Group and Digital X is not entirely bright. In the domestic virtual asset exchange market, Upbit maintains an undisputed lead, with Bithumb trailing behind. Korbit's domestic market share is only at the 1% level. It is difficult to say that Korbit holds a significant presence in the industry. Furthermore, Digital X's performance has been poor, recording a net loss of 15.8 billion KRW last year.
Another variable is the issue of limiting major shareholder stakes. Financial authorities are considering a plan to cap the ownership stake of major shareholders in virtual asset exchanges at 15–20%. The rationale is that as the influence of virtual assets on the market grows, it is necessary to prevent the concentration of control in specific individuals or corporations.
Although nothing is finalized, if the financial authorities proceed with limiting major shareholder stakes, Mirae Asset Group would face a dilemma. Mirae Asset Consulting currently holds a 97.15% stake in Digital X. If the shareholder limit becomes a reality, Mirae Asset Consulting would have to sell a significant portion of its shares. This would make it difficult to fully exercise control over Digital X.
However, there is room for a reversal, as there is significant opposition to the stake limit. The office of Representative Kim Sang-hoon of the People Power Party stated, "Limiting the stakes of major shareholders in virtual asset exchanges may be unconstitutional, and similar legislative examples are difficult to find in major overseas countries. A precise comparison and design are needed that comprehensively considers the functional equivalence to stock exchanges, market structure, the nature of risks, and differences in regulatory environments."
It is reported that financial authorities and the ruling Democratic Party are pushing for the second stage of virtual asset legislation (the Digital Asset Basic Act) around the regular parliamentary session in September. Once the legislative process begins in earnest, the outlines for the proposed limits on major shareholder stakes in virtual asset exchanges are expected to emerge.