Summary
- Bithumb, a South Korean exchange, has laid out a three-phase plan aiming for an IPO by 2028.
- The plan includes enhancing internal controls and transitioning to K-IFRS by 2026, followed by a preliminary listing review in 2027.
- In March, the exchange was fined $24.5 million, and its CEO, Lee Jae-won, became embroiled in a bribery investigation in June.
Bithumb has announced a strategic roadmap consisting of three stages aimed at achieving a stock market listing in 2028. The exchange informed its clients on Monday that it will focus on upgrading its internal controls and adapting its accounting practices this year, before submitting a request for a preliminary listing review in 2027. Bithumb is in competition with Upbit, which is operated by Dunamu, for dominance in South Korea's cryptocurrency market.
The announcement emphasizes the importance of trust. Bithumb is working to enhance its risk management to align with the standards expected of regulated financial institutions, transitioning from the Korean K-GAAP accounting standard to the global K-IFRS. The exchange is also intensifying its compliance monitoring to meet institutional finance standards. To mitigate potential conflicts of interest, Bithumb has separated its business operations by establishing Bithumb Asset, and it has partnered with both local and international underwriters, law firms, and accounting firms. Furthermore, the exchange commits to regular financial disclosures and updates on its cryptocurrency holdings.
Background
This IPO strategy comes amid a series of legal and regulatory hurdles for Bithumb.
Earlier this year, a technical glitch incorrectly credited numerous users with Bitcoin that they did not own. Legislators criticized regulators for their response, while investigators looked into compensation matters. The exchange even sought legal action to reclaim coins from users who refused to return them.
In March, regulatory authorities imposed a fine of $24.5 million on Bithumb and issued a six-month partial business suspension due to violations related to anti-money-laundering and customer verification processes. However, a court overturned this order in April after Bithumb contested it.
Subsequently, CEO Lee Jae-won was identified as a suspect in a bribery case concerning the alleged employment of a National Assembly member's son, with police conducting searches at Bithumb's headquarters in February and June.
Despite these challenges, the notice published on Monday outlines Bithumb's commitment to customer promises such as transparent governance, enhanced internal controls, improved investor protection, sustainable growth, and a management system adhering to global standards. The company also noted that the timeline for its IPO could be adjusted based on market conditions and the review process it must complete.