Bithumb plans IPO in 2025, restructuring into two entities amid regulatory challenges in South Korea’s crypto landscape - IcoHolder.

South Korea’s crypto landscape is rapidly evolving in 2025, with heightened regulatory pressure and political uncertainty casting a shadow over the sector. In the midst of these challenges, Bithumb, one of the country’s largest cryptocurrency exchanges, is making a bold move: the company plans to split its business in preparation for an initial public offering (IPO) later this year.

The separation, scheduled for July 31, 2025, will divide Bithumb’s non-exchange operations into a new entity, tentatively named "Bithumb A." This restructuring aims to safeguard the core trading platform from the risks associated with its other ventures. Under the new structure, Bithumb will retain a 56% stake in its original exchange, while Bithumb A will hold the remaining 44%. The goal is to enhance operational efficiency and focus, positioning both entities for long-term growth as Bithumb prepares for a potential IPO.

Targeting a listing in the second half of 2025, Bithumb is working with Samsung Securities to lead the IPO process. While a domestic listing in South Korea is the current plan, the company is also exploring the possibility of debuting on the Nasdaq to boost its international profile. This follows a strong financial performance in 2024, where Bithumb reported a net profit of $110 million, marking a 560% increase from the previous year. Though still trailing behind rival Upbit’s $671 million profit, Bithumb’s recovery signals a positive shift for the exchange.

However, the road ahead is not without challenges. Bithumb has faced increasing regulatory scrutiny, including a suspension notice in early 2025 related to Know Your Customer (KYC) compliance failures, affecting hundreds of thousands of user accounts. Additionally, the Financial Intelligence Unit imposed a partial suspension on Bithumb’s operator, Dunamu, due to connections with unregistered foreign platforms. These regulatory hurdles underscore the difficulties facing the crypto industry in South Korea, as authorities tighten oversight of digital assets.

Despite these challenges, Bithumb’s restructuring could prove to be a strategic move, enabling the exchange to better navigate the regulatory landscape and build investor confidence as it moves toward its IPO. Whether it debuts on the Seoul Stock Exchange or Nasdaq, Bithumb is positioning itself as a key player in the global crypto market.