Bithumb Aims to Become the Premier Cryptocurrency Exchange Listed on the South Korean Stock Exchange

Article Credit: Hannah Parker

Seoul, South Korea, February 3, 2024: The cryptocurrency exchange Bithumb is preparing for a groundbreaking move to become the first digital asset company to list shares publicly on the South Korean stock market, with plans underway for an initial public offering (IPO).

A report on November 12, 2023, by the local publication Edaily indicated Bithumb’s intent to list on the Kosdaq, South Korea’s equivalent of the Nasdaq. They anticipate the IPO will occur in the latter half of the year.

Company Profile

Since its establishment in 2014, Bithumb has been managing a diverse cryptocurrency portfolio that includes 191 cryptocurrencies and 287 trade pairings. Despite their refusal to confirm the IPO proceedings, it was uncovered that they have chosen an underwriter, with Samsung Securities reportedly lined up for this pivotal role.

Industry insiders disclosed that Bithumb’s ex-chairman, Lee Jong-hoon, has assumed the position of registered director. Meanwhile, the board of directors currently excludes CEO Lee Sang-jun due to a bribery investigation in progress. Allegedly, the public listing initiative is a strategic move to retain market position against its major competitor, Upbit.

Historical Context

Reports by Bitcoin Apex on December 30, 2022, detailed the death of Park Mo, Vice President of Vidente and major Bithumb shareholder, amidst embezzlement and stock manipulation accusations. His death followed a prosecutor’s investigation that affected Bithumb-affiliated entities.

In a related development, Bithumb’s presumed ultimate owner, Kang Jong-hyun, was seized by authorities on accusations of financial misconduct. Amid these controversies, Kang Ji-yeon, head of the Bithumb-affiliated Inbiogen and brother to Kang Jong-hyun, pledged cooperation with the investigative process.

Crypto Exchange Trajectory

Despite being in second place among South Korea’s exchanges by daily volume, Bithumb faces stiff competition from Upbit. As of July 2023, Upbit surpassed international exchanges in terms of monthly spot trading volume, with Binance maintaining the lead globally.

During an investigation in May 2023, both Bithumb and Upbit were scrutinized by Korean authorities. In the midst of these events, lawmaker Kim Nam-kuk, a user of both exchanges, resigned following a raid that may have been related to his cryptocurrency activities.

Bithumb forges ahead with determination to be South Korea’s first publicly listed crypto exchange, signaling its ambition to grow its business despite facing significant challenges.