OKX Ventures Takes 20% Stake in Coinone to Boost Crypto Growth

OKX Ventures acquires a 20% stake in Coinone to improve crypto trading technology, strengthen compliance, and expand institutional services in South Korea.

OKX Ventures has acquired a 20% stake in South Korean cryptocurrency exchange Coinone. With the investment, OKX Ventures becomes the third-largest shareholder of the company. Additionally, the collaboration is expected to enhance Coinone’s technology, security, and compliance, and contribute to the future development of the crypto industry in South Korea.

OKX and Coinone Build a Technology Partnership

The investment was made based on a shared vision of technology, according to DigitalToday. OKX and Coinone agree that robust technology and compliance are key to the future of the cryptocurrency sector. So, they decided to collaborate by making a strategic investment.

https://twitter.com/WuBlockchain/status/2073684160095703046

Cha Myung-hoon, the founder and CEO of Coinone, is a computer science graduate of Pohang University of Science and Technology. He was previously a white-hat hacker before starting Coinone. In the meantime, OKX’s CEO, Star Xu, is a physics graduate of Renmin University of China. Later, he worked as an engineer and chief technology officer at Yahoo Beijing.

Related reading: Coinbase, OKX Target Binance EU Users Before MiCA.

Recently, Star Xu stated that Coinone has established a solid security and risk management culture. He further noted that Cha’s expertise as a white-hat hacker aligns with OKX’s engineering-centric strategy. Consequently, both companies have similar long-term objectives.

The investment comes as part of a 160 billion KRW ($106 million) investment package between OKX Ventures and Korea Investment & Securities (KIS). The transaction comprises new shares and the purchase of existing shares. Therefore, Coinone gets fresh capital, and the existing shareholders are also involved in the deal.

Despite the investment, Cha Myung-hoon will remain CEO and retain full management control. He remains the top individual shareholder with a 27.8% stake. Com2uS Holdings and its affiliates own 25.0%, and OKX Ventures and KIS each own 19.6%.

Investment Focuses on Technology and Compliance

Coinone will leverage OKX’s technology to enhance its exchange. The company will incorporate OKX’s matching engine, custody system, and wallet technology. This means that users might experience quicker trading, improved security measures, and more stable services.

The partnership also helps Coinone’s compliance. South Korea has enacted tougher regulations via the Virtual Asset User Protection Act. Therefore, Coinone will enhance its compliance system by leveraging OKX’s global expertise in security and risk management.

Meanwhile, OKX is also gaining more access to the regulated crypto market in South Korea via Coinone. This will enable the company to grow its footprint without having to create a new local exchange. This means that both firms could see future expansion in the nation’s digital asset sector.

Korea Investment & Securities is also part of the partnership. The three companies will look into new digital financial products together. As South Korea is developing new regulations, these can be security token offerings (STOs), stablecoins, and tokenized financial services.

Overall, the investment demonstrates the cooperation between global crypto companies and regulated local exchanges. As crypto regulations become clearer, technology, security, and compliance are becoming more important. In this regard, the partnership between OKX Ventures and Coinone is designed to help the company grow sustainably and get ready for the next phase of institutional adoption of cryptocurrencies in Asia.

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