Headquarters of Mirae Asset Financial Group in Seoul / Courtesy of Mirae Asset Financial Group
Mirae Asset Financial Group’s bid to acquire a stake in the virtual asset exchange Korbit has sparked controversy over possible preferential treatment, as critics say the deal effectively sidesteps restrictions on financial institutions owning crypto exchanges, industry officials said Monday.
In February, Mirae Asset Consulting, an affiliate of the group, announced an agreement to purchase 26.91 million shares in Korbit — equivalent to a 92.06 percent stake — for 133.5 billion won ($91 million), citing plans to secure new growth drivers in the virtual asset sector.
The Financial Intelligence Unit under the Financial Services Commission, the country’s top financial regulator, later approved changes to Korbit’s executive lineup, including the appointment of Mirae Asset Consulting representatives to its board.
The remaining step is a review by the Fair Trade Commission (FTC), which has recently collected opinions from around 10 securities firms to assess the deal’s potential market impact.
According to industry insiders, the FTC asked whether the combined entity could raise entry barriers or sideline competitors, for example, if crypto asset-linked exchange-traded funds (ETFs) were offered exclusively or on preferential terms to Mirae Asset Securities.
Most brokerages have reportedly raised concerns in their submissions to the FTC, warning that approving the deal could be seen as conferring undue benefits. Although Mirae Asset Consulting is formally a nonfinancial affiliate, critics argue that the transaction effectively bypasses the principle of separating financial and virtual asset businesses.
While Mirae Asset Consulting mainly engages in businesses such as real estate asset management, it also plays a central role in the group’s governance structure through its holdings in key affiliates, including Mirae Asset Global Investments and Mirae Asset Capital.
Since late 2017, regulators have prohibited banks, brokerages and other financial institutions from holding, buying or investing in digital assets, citing risks of speculative overheating and potential damage to financial stability and investor protection in the event of a price crash.
While not legally binding, the separation between financial and virtual asset businesses has effectively functioned as a de facto rule in supervision, preventing financial firms from acquiring crypto exchanges for nearly eight years.
Source: Korea Times News
