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- Bithumb delays IPO plans to 2028 amid rising regulatory pressure
- Internal errors and probes complicate Bithumb’s path to public listing
- Rival Upbit advances IPO strategy as Bithumb focuses on compliance
South Korea’s crypto market is entering a new phase as listing ambitions slow under regulatory weight. Bithumb has now pushed its long-awaited public launch to later on in the future. The exchange assured that its IPO would not be made before 2028 because it is in internal restructuring and compliance improvement.
At one of the recent shareholder meetings, the Chief Financial Officer, Jeong Sang-gyun, reported that preparations continue. He said that the company is focusing on a superior accounting standard and stricter internal control. As well, the company still undertakes internal audits to ensure that it fulfils the expectations of regulatory practices.
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Further, Bithumb has renewed its advisory contract with Samjong KPMG till 2027. This action is an indication that the exchange anticipates that the preparation cycle is going to take more time than originally anticipated. Previously, it was estimated that the company could be listed in the second half of 2025. However, these expectations have now changed dramatically because of the accumulating challenges.
Internal setbacks and regulatory scrutiny reshape listing timeline
The company has encountered recent internal problems, which have put additional strain on its listing ambitions. In January of this year, Bithumb (inadvertently) gave out some 620,000 Bitcoin as part of a marketing effort. The mistake was in the tune of approximately $43 billion.
Therefore, the event caused instant alarm among regulators and market watchers. Even though the exchange recouped the majority of the funds, the incident revealed vulnerabilities in operational controls. In their turn, Bithumb established a special task force aimed at enhancing supervision and avoiding such cases.
Compliance upgrades and advisory extension signal a longer preparation phase
Also, the Financial Supervisory Service in South Korea initiated an official audit of the risk management systems of the exchange. This probe is still to evaluate internal safeguards against the required standards. At the same time, the Financial Intelligence Unit imposed a fine of about $27 million. A partial business suspension was also brought up by the regulator, putting additional pressure on the firm.
In addition to that, Bithumb executives have affirmed that they are exploring the possibility of appealing the sanctions. Nonetheless, the regulatory climate is one of the factors that affected the slowed IPO process. These upgrades in compliance have become the center of its pre-listing strategy.
Rival Upbit accelerates IPO ambitions amid shifting market competition
In the meantime, the rivalry in the crypto market of South Korea is only growing. Dunamu, the owner of rival exchange Upbit, is also aggressively seeking its own IPO strategy. Naver Financial is collaborating with the company as it seeks to list.
Besides, this concomitant development underscores the increasing divergence in the preparedness of major exchanges. Whereas Bithumb is leaning towards internal restructuring, its competitor is proceeding with listing preparations. As a result, the competition to be a publicly traded crypto company in South Korea is experiencing a new wave.
The long IPO process of Bithumb is indicative of an overall change to a more stringent regulation of the crypto industry. With the pressure of regulations, exchanges should focus on stability and compliance prior to joining the public markets.
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