Bithumb’s Latest Ambitious Plans for South Korean IPO in 2025
South Korean cryptocurrency exchange Bithumb is gearing up for an initial public offering (IPO) in the second half of 2025, aiming to become the first crypto exchange listed on the South Korean stock market. The move comes as Bithumb seeks to bolster its position in the fiercely competitive crypto industry and close the gap with its rival, Upbit, which dominates over 80% of the South Korean market.
Samsung Securities: The Trusted Partner
Bithumb has selected Samsung Securities as its underwriter for the upcoming IPO. This decision underlines the exchange’s commitment to ensuring a successful listing on Kosdaq, the South Korean equivalent of Nasdaq. While Bithumb has yet to officially confirm the IPO, the choice of underwriter demonstrates a strategic shift towards greater financial transparency and security.
The Return of Lee Jeong-hoon
Intriguingly, Lee Jeong-hoon, Bithumb’s former chair, has re-emerged as a registered director on the exchange’s board. This development follows his exoneration from fraud charges related to Bithumb’s acquisition in October 2018. Lee’s return signals a potential change in Bithumb’s leadership structure and a renewed focus on growth.
Market Dynamics and Regulatory Challenges
Bithumb’s quest for an IPO comes in the wake of regulatory scrutiny faced by the South Korean crypto industry in 2021. The government aimed to address fraud and illicit activities within the sector, leading to investigations into various exchanges. Bithumb’s offices were even raided earlier this year in connection with alleged price manipulation of a digital asset.
A Growing Crypto Landscape
Despite the challenges, the cryptocurrency trading landscape in South Korea remains robust. Upbit, Bithumb’s main competitor, surged ahead in August, surpassing global giants like Coinbase and OKX to become the world’s second-largest crypto exchange after Binance. This competitive environment drives Bithumb’s determination to secure its market position.
Tax Troubles and Investigations
Bithumb’s journey to IPO hasn’t been without hurdles. In January 2023, the South Korean National Tax Service initiated an inquiry into potential tax evasion activities by the exchange and its associated entities. While previous investigations resulted in fines for back taxes, no findings of tax evasion were established. Additionally, Bithumb was part of investigations related to the collapse of Terra, which led to the raiding of its offices.
A Strategic Move
Bithumb’s decision to go public is a strategic move to strengthen its market position and challenge the dominance of Upbit. Currently the second-largest crypto exchange in South Korea, Bithumb aims to use the IPO to further its market share and enhance its standing in the crypto world.
In a landscape marked by regulatory challenges and fierce competition, Bithumb’s plans for an IPO signify its determination to evolve, ensuring transparency and security for its users while pursuing ambitious growth goals. As the crypto industry continues to mature, Bithumb’s journey towards becoming a publicly listed exchange will be one to watch closely, potentially setting a precedent for other digital asset companies in South Korea.
