South Korea’s main crypto trade, Bithumb, is making huge strikes towards its long-awaited preliminary public providing (IPO). After years of authorized battles, the corporate has lastly cleared a significant hurdle, bringing it one step nearer to a inventory market debut.
A serious roadblock for Bithumb was the authorized case involving its former chairman, Lee Jung-hoon. In response to native media stories, he was accused of fraud, which solid a shadow over the trade’s IPO plans for years. Nevertheless, South Korea’s Supreme Court docket has dominated in Lee’s favor, eliminating a key authorized danger for the corporate. With this problem behind them, Bithumb is now specializing in pushing ahead with its IPO plans, aiming for a 2025 itemizing.
New Begining with Clear Guidelines
Bithumb has been engaged on its IPO technique since 2020 however needed to put plans on maintain attributable to authorized troubles. Now, with a transparent path forward, the trade is anticipated to hurry up the method. The corporate has appointed Samsung Securities to handle the providing and is concentrating on a list on the NASDAQ, following within the footsteps of Coinbase and Japan’s Coincheck.
One of many largest elements supporting Bithumb’s IPO is South Korea’s altering stance on crypto laws. Till now, banks and huge corporations have been restricted from investing in cryptocurrencies. Nevertheless, regulators are anticipated to loosen these guidelines later this yr, permitting institutional traders to enter the market.
A pilot program is ready to start quickly, giving choose institutional traders restricted entry to crypto investments. If profitable, South Korean companies could also be allowed to carry Bitcoin and different digital property on their stability sheets. This might convey important new capital into the business, boosting exchanges like Bithumb.
Banking Partnership Provides Power
Furthermore, Bithumb has additionally strengthened its place by partnering with KB Kookmin Financial institution, South Korea’s largest banking agency. This deal is anticipated to assist entice extra company purchasers and strengthen its IPO case. In the meantime, its largest rival, Upbit, has partnered with Okay Financial institution, which can also be planning an IPO.
Challenges Nonetheless Stay
Regardless of these constructive modifications, Bithumb nonetheless faces challenges. Regulators are at present conducting an anti-money laundering (AML) investigation, and any penalties might affect the corporate’s IPO timeline. Plus, questions stay about Bithumb’s possession construction, notably the involvement of businessman Kang Jong-hyun. As of now, Bithumb is happy for IPO to achieve misplaced investor religion and to convey new traders on board.
