Bithumb overcomes legal hurdles and moves closer to its IPO in 2025, with optimism fueled by regulatory changes - IcoHolder.
South Korea’s leading cryptocurrency exchange, Bithumb, is on track for a major milestone: its long-awaited initial public offering (IPO). After overcoming significant legal hurdles, the company is now closer than ever to launching on the stock market.
The company had long been delayed by a legal case involving its former chairman, Lee Jung-hoon. Accused of fraud, the case cast a cloud over Bithumb’s IPO aspirations for years. However, in a significant turn of events, South Korea’s Supreme Court ruled in Lee’s favor, clearing a major legal risk for the exchange. With this issue behind them, Bithumb is now turning its full attention to its IPO plans, aiming for a 2025 listing.
Bithumb has been working on its IPO strategy since 2020 but faced multiple setbacks due to the legal challenges. Now, with a clear path forward, the exchange is expected to accelerate its plans. In a key step, Bithumb has appointed Samsung Securities to manage the offering, with plans for a NASDAQ listing. The company aims to follow in the footsteps of other crypto exchanges, such as Coinbase and Japan's Coincheck.
A significant factor behind Bithumb’s renewed optimism is the changing regulatory landscape in South Korea. Until recently, the country had strict rules that prevented banks and major corporations from investing in cryptocurrencies. However, regulators are expected to relax these restrictions later this year, opening the door for institutional investors to enter the market.
To kickstart this shift, a pilot program will soon allow select institutional investors limited access to crypto investments. If the program proves successful, it could lead to South Korean firms being permitted to hold Bitcoin and other digital assets on their balance sheets. This would inject significant capital into the crypto market, benefiting exchanges like Bithumb.
As the exchange navigates these exciting developments, Bithumb’s IPO prospects look brighter than ever, setting the stage for its debut on the global financial stage.
