South Korea’s Bithumb Aiming for National IPO First
Bithumb wants to become the first crypto exchange to go public on the Korea Exchange.
The firm has reportedly developed plans to spin off some of its operations into a separate company to speed up the process.
Lee became Bithumb CEO in May 2022 after serving as the head of the firm’s global operations.
He helmed a previous attempt to launch an IPO in 2020. But this bid was eventually shelved due to concerns about the firm’s “opaque governance structure.”
The 2020 attempt was also derailed by a prosecution service investigation into fraud charges leveled against the former Bithumb Holdings and Bithumb Korea board chairman Lee Jeong-hoon.
Lee Joeng-hoon has since been acquitted. Bithumb resurrected its IPO plans in November last year.
Compliance to Take Priority
The media outlet reported that Bithumb is still planning a spin-off. But Bithumb will likely need to delay this for a while as it first prioritizes its compliance with the Act on the Protection of Virtual Asset Users, which will take effect from July 19, 2024.
The outlet wrote that “it seems unlikely that CEO Lee will be replaced” as the firm looks for “continuity in its IPO strategy.”
Lee has also been credited with turning the exchange’s fortunes around during crypto winter by temporarily doing away with commission fees.
The move briefly saw Bithumb’s trading volumes surpass those of the market-leading Upbit exchange.
The company has since fallen behind Upbit again after restoring commission fees. But Bithumb volumes have remained high in the period since.
Insiders also believe that Lee retains the backing of Lee Jeong-hoon. The latter may soon make a “return to the Bithumb board of directors,” the media outlet noted.
