Bithumb Eyes Nasdaq Listing After Dropping KOSDAQ IPO

• Bithumb is reviewing plans to list on the US Nasdaq in 2024.
• The company will split its business divisions to streamline its virtual asset operations.
• Bithumb is rebranding to strengthen its corporate identity ahead of the IPO.

Bithumb, one of South Korea’s leading cryptocurrency exchanges, is considering a US Nasdaq listing, according to local news. At a shareholders’ meeting held on the 30th, the exchange said it is reviewing its listing options, with a potential initial public offering (IPO) planned for the second half of 2024. Samsung Securities will be the lead manager for the IPO.

To improve its chances of a successful listing, Bithumb plans to streamline its operations by splitting its human resources department to enhance the new business division by focusing on its core virtual asset exchange business. The exchange may name the separate entity Bithumb A or Bithumb Investment. This new division will manage holdings, investments, and real estate brokerage activities.

Earlier, Bithumb had tried to list on South Korea’s KOSDAQ market in 2020, but dropped the initiative due to unclear regulations surrounding virtual assets. A Bithumb representative said the exchange is keeping all options open for its IPO.

Read also: South Korea to Tackle Crypto Insider Trading with Legal Amendment

Bithumb’s IPO Gambit and Legal Hurdles

Industry insiders believe Bithumb may have better success listing overseas. South Korea’s financial authorities do not recognize virtual assets as financial products, limiting Bitcoin ETFs in the country. The US Nasdaq already lists Coinbase, making it an attractive option for Bithumb.

Read also: Bithumb’s Bank Switch Under Review by South Korean Regulator

At the shareholders’ meeting, Bithumb also approved a name change for its corporate entity. The company, previously known as Bithumb Korea, will now be called Bithumb.

That said, Bithumb’s potential Nasdaq listing comes as its ex-CEO, Lee Sang-joon, faces allegations in a crypto listing scandal. The scandal raises concerns about Bithumb’s governance, which could impact investor confidence during its IPO.

While Bithumb is pushing for global expansion, regulatory and reputational risks may affect their plans. This backdrop of controversy could influence how the market reacts to their IPO.