Bithumb Sets Sights on 2028 IPO with New Roadmap

Summary

• Bithumb, a South Korean cryptocurrency exchange, has unveiled a three-phase strategy targeting an IPO by 2028.
• The roadmap includes enhancing internal controls and transitioning to K-IFRS by 2026, followed by a preliminary listing review in 2027.
• The exchange faced a $24.5 million fine in March and its CEO is under investigation for bribery.

Bithumb has set forth a detailed three-stage plan aimed at launching an initial public offering (IPO) by 2028. Announced to clients on Monday, the strategy focuses on strengthening internal controls and updating accounting practices this year, with a planned request for a preliminary listing review in 2027. Bithumb competes with Upbit, operated by Dunamu, for leadership in South Korea's cryptocurrency sector.

The exchange emphasizes building trust as it works to improve risk management and align with standards typical of regulated financial institutions. Plans include transitioning from the Korean K-GAAP accounting standard to global K-IFRS and enhancing compliance monitoring. To avoid conflicts of interest, Bithumb has established Bithumb Asset to separate its business operations and has engaged local and international underwriters, law firms, and accounting firms. The exchange also commits to regular financial disclosures regarding its cryptocurrency holdings.

Background

This IPO initiative comes in the wake of various legal challenges for Bithumb.

Earlier this year, a technical error mistakenly credited Bitcoin to users, prompting criticism from legislators and an investigation into compensation. Bithumb even pursued legal action to recover coins from users who refused to return them.

In March, the exchange was fined $24.5 million and faced a six-month partial business suspension for anti-money laundering and customer verification violations. However, a court overturned this suspension in April after Bithumb appealed.

Additionally, CEO Lee Jae-won has been implicated in a bribery investigation linked to the hiring of a National Assembly member's son, leading to police searches at Bithumb's headquarters in February and June.

Despite these setbacks, Bithumb's announcement reflects its commitment to transparency, improved internal controls, investor protection, and adherence to global management standards. The timeline for the IPO may be adjusted depending on market conditions and the review process.