Key facts
- Bithumb aims for an initial public offering (IPO) by 2028.
- The exchange plans to upgrade internal controls and adopt international accounting standards by the end of 2026.
- A preliminary listing review is scheduled for 2027.
- Bithumb was fined $24.5 million for AML/KYC failures, with a business suspension order later blocked.
- CEO Lee Jae-won is under investigation for bribery.
- South Korea's 22% tax on crypto gains will take effect on January 1, 2027.
South Korean cryptocurrency exchange Bithumb has announced a formal three-stage roadmap with the goal of achieving an initial public offering (IPO) by 2028. The exchange plans to complete advanced internal controls and prepare for global accounting standards by the end of 2026, file for a preliminary listing review in 2027, and then proceed with a full public offering in 2028. This roadmap follows a period of significant regulatory and operational challenges for Bithumb, including a $24.5 million fine for anti-money-laundering and know-your-customer failures, though a court later blocked a six-month partial suspension order. Additionally, CEO Lee Jae-won is under investigation as a bribery suspect. Bithumb is implementing changes to rebuild trust and meet global standards, including strengthening risk management, transitioning to K-IFRS accounting, and separating business lines by spinning off Bithumb Asset. The exchange is also engaging underwriters and legal counsel to support its IPO ambitions. The IPO push coincides with South Korea's upcoming implementation of a 22% tax on cryptocurrency gains starting January 1, 2027, for individuals earning over KRW 2.5 million ($1,740) annually. This regulatory shift is expected to influence trading volumes and compliance requirements for exchanges like Bithumb. In February, Bithumb mistakenly credited customer accounts with 620,000 Bitcoin instead of KRW 620,000 in cash rewards, recovering 99.7% of the erroneous credits before freezing accounts. Two Bithumb-linked listed companies, Vidente and Bucket Studio, have had their shares suspended since March 2023 due to audit and listing issues. Rival exchanges Korbit and Upbit are also undergoing significant ownership and structural changes, with Mirae Asset Consulting taking control of Korbit and Upbit operator Dunamu pursuing a share-swap deal with Naver Financial.