South Korean conglomerate Hanwha Group is reportedly acquiring a stake in the parent company of major local cryptocurrency exchange Upbit.
February 3, 2021 | AtoZ Markets – Hanwha Investment and Securities brokerage company, part of the Hanwha Group, has reached an agreement to purchase a 6.15% stake in Dumanu, which operates the Upbit cryptocurrency exchange.
The deal will be worth 58.3 billion won ($52.24 million). Its finalization is scheduled for February 22nd.
Hanwha Upbit Shares A Long Term Investment
A representative of the Hanwha Group said that the company is betting on digitalization and the further development of the fintech industry. According to him, the purchase of 2.06 million shares of Upbit is a “long-term investment”.
“As we are focusing on developing more digital services, we anticipate to achieve meaningful results in fintech related businesses. Since Dunamu already has a high-skilled innovative finance service, we decided to cooperate with the financial technology firm.”
Hanwha, along with Samsung, Hyundai, LG, and SK Group, is South Korea’s largest financial and industrial conglomerate.
The company is actively increasing its involvement in the blockchain industry and the cryptocurrency industry through its subsidiaries. In January, she participated in a funding round for the Singapore-based digital securities platform iSTOX.
Since 2018, a subsidiary of the insurance company Hanwha Group has been selling insurance products to Korean cryptocurrency exchanges . They include compensation for losses due to hacker attacks.
As a reminder, in November 2019, as a result of the Upbit hack, attackers stole 342,000 ETH ($48.2 million at the exchange rate at that time).
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