FTC Approves Mirae Asset’s Acquisition of Korbit... Will the Separation of Gold and Silver Be Broken? [Crypto Briefing]

[Financial News] The Fair Trade Commission (FTC) has approved the acquisition of the virtual asset exchange Korbit by Mirae Asset Consulting, an affiliate of the Mirae Asset Group. 5%. This merger marks the first instance of a financial group affiliate acquiring a virtual asset exchange. Consequently, expectations are rising that the stance on "separation of finance and virtual assets" will be eased.
4 billion won.
Mirae Asset Consulting is an affiliate of Mirae Asset. According to the FTC, Mirae Asset Consulting is a non-financial affiliate whose revenue is largely generated from hotel operations. Mirae Asset Group's financial affiliates include Mirae Asset Securities and Mirae Asset Asset Management.
Korbit is the operator of 'Korbit,' a virtual asset exchange that enables trading in Korean Won. In order for a virtual asset exchange to support Won trading, it must undergo a reporting procedure to financial authorities by meeting requirements such as obtaining information security management system certification and linking bank deposit and withdrawal accounts capable of real-name verification, in accordance with the Specific Financial Information Act. The Fair Trade Commission explained that there are five domestic virtual asset exchanges that meet these requirements: Upbit, Bithumb, Coinone, Korbit, and Gopax.
The Fair Trade Commission determined that this stock acquisition results in two types of mixed combinations. One is a combination between the securities business and a virtual asset exchange, and the other is a combination between the asset management business and a virtual asset exchange.
In the review regarding the securities business, it was examined whether the launch of a single platform integrating a listed stock investment platform and a virtual asset exchange would create entry barriers in the securities market or pose a risk of excluding other competitors. In the review regarding the asset management business, the possibility that competitors might be excluded from the asset management market should virtual asset-based exchange-traded funds (ETFs) be launched in the future was subject to scrutiny.
The Fair Trade Commission (FTC) concluded that there is no significant likelihood of anti-competitive effects for either combination. 1% for Gopax.
The FTC determined that, considering Korbit's market share and liquidity levels, it is unlikely that anti-competitive effects, such as the exclusion of competitors in the securities or asset management markets, will occur. For concerns regarding anti-competitive effects to materialize, sufficient liquidity must be secured at the Korbit exchange; the FTC judged that the current level of liquidity is insufficient to cause such effects. The FTC explained that, given the current state of market concentration, it is also difficult to assume a scenario where Korbit secures sufficient liquidity in the future.
The domestic virtual asset market has a structure with a high proportion of individual investors. The Fair Trade Commission analyzed that individual investors tend to prioritize liquidity over fees when selecting an exchange, leading to a severe concentration of users at top-tier exchanges. In the context of virtual asset exchanges, liquidity is a concept that encompasses the gap between buy and sell quotes, order volumes at each price level, and trading volume.
This approval is significant as it marks the first instance of a financial group affiliate acquiring a virtual asset exchange amidst the trend of convergence between traditional financial institutions and virtual asset exchanges. However, the KFTC's approval is merely a review of the business combination, and future launches of integrated securities and virtual asset services or the commercialization of virtual asset-based ETFs may depend on separate regulations and market conditions.
elikim@fnnews.com Kim Mi-hee Kim Chan-mi Reporter