Bithumb announces 2028 public listing target amid internal control reforms
The cryptocurrency exchange based in South Korea intends to pursue preliminary listing evaluation in 2027 as it implements comprehensive control improvements following a crediting mistake in February.
Bithumb, a cryptocurrency exchange headquartered in South Korea, announced on Monday its intention to submit an application for preliminary listing evaluation in 2027, with plans to finalize its initial public offering by 2028.
According to Bithumb, the company has undertaken a comprehensive reorganization of its operational structure, which includes the separation of Bithumb Asset as an independent entity, with the goal of establishing clear accountability within its various business divisions and minimizing potential conflicts of interest in advance of the listing evaluation process.
The cryptocurrency platform stated that its preparatory measures will encompass enhancements to internal control systems and a transition from Korea's domestic accounting standards to K-IFRS, which represents the international accounting framework utilized by publicly traded corporations in South Korea.
According to Bithumb, the proposed timeline remains subject to modification based on prevailing market conditions and the examination schedules established by relevant regulatory authorities.
The platform is among five cryptocurrency exchanges operating in South Korea that facilitate fiat currency transactions through real-name banking accounts, which are provided via its collaborative arrangement with KB Kookmin Bank.
Bithumb's move toward a public listing occurs as competing South Korean cryptocurrency exchanges strengthen their relationships with conventional finance and technology corporations. On July 23, Mirae Asset Consulting assumed control of competing exchange Korbit, while Dunamu, which operates Upbit, is working toward a share-swap agreement that would transform it into a fully owned subsidiary of Naver Financial, pending regulatory and shareholder authorization.
Bithumb's 620,000 BTC crediting error
During a February promotional campaign mishap, Bithumb erroneously credited customer accounts with aggregate balances amounting to 620,000 Bitcoin rather than dispensing 620,000 Korean won in monetary rewards. The exchange successfully retrieved 99.7% of the incorrectly issued credits, although customers managed to sell approximately 1,788 BTC prior to the freezing of affected accounts.
During a Feb. 11 National Assembly parliamentary hearing, Lee Jae-won, Bithumb's CEO, testified that the exchange's verification procedure for cross-checking the intended distribution against its actual cryptocurrency holdings had malfunctioned and that the promotional allocation had not been segregated in a dedicated account.
The IPO preparation efforts are also unfolding as two publicly listed companies connected to Bithumb continue to experience ongoing audit and listing complications. Trading in shares of Vidente, a significant Bithumb shareholder, and Bucket Studio, which maintains indirect control over Vidente, has remained suspended since March 2023 due to audit-related and other listing compliance matters.
Based on reporting from Yonhap news agency, Bucket Studio designated a former police official to serve as its standing auditor in June, while Vidente has plans to appoint a former National Tax Service official to an equivalent position. The Government Public Service Ethics Committee in South Korea approved both appointments after determining there was no substantial connection between the officials' prior governmental responsibilities and their new corporate roles.