Bithumb Targets 2028 IPO After Major Restructuring

South Korean exchange Bithumb has announced plans for an IPO in 2028 following a major internal restructuring of its business. The company intends to file for a preliminary listing review as early as 2027. Bithumb ranks among the leading centralized exchanges (CEX) in South Korea and has spent years competing with rival Upbit for the top spot in the local market. The listing push follows growing competition between local crypto platforms.

Listing Plans and a Shift in Accounting Standards

According to Cointelegraph, the exchange is looking at a preliminary listing review in 2027, with the share offering itself, the actual IPO, planned for 2028. Bithumb has not yet named a specific venue for the listing. In South Korea, companies typically choose between the KOSPI and KOSDAQ stock exchanges.

Such a move is rare for a crypto exchange. The country's financial regulator has traditionally treated crypto platforms with caution, so a formal listing means years of preparing financial reporting and corporate structure to meet the standards of a public company. If Bithumb sticks to the stated timeline, it would become one of the first Korean crypto exchanges to trade shares on a stock exchange.

Ahead of the review, Bithumb is switching from domestic Korean accounting rules to K-IFRS, the international financial reporting framework used by publicly listed companies in South Korea. The shift brings the exchange's financial statements closer to a format familiar to investors and regulators.

Bithumb operates through a partnership with KB Kookmin Bank and is one of five South Korean platforms that support fiat trading through verified bank accounts. The company said the timetable could still change depending on market conditions and the pace of review by relevant authorities.

Restructuring Ahead of the Review

To reduce potential conflicts of interest before the listing, Bithumb spun off its Bithumb Asset unit into a separate structure. The company said the move was meant to clarify responsibilities across its business lines and remove overlapping functions within the group.

At the same time, Bithumb is overhauling its internal review and reporting procedures. The changes are a direct response to a February error, when the system mistakenly credited customers with cryptocurrency instead of a cash reward. Management acknowledged that the episode exposed weak spots in internal controls ahead of going public.

What Happened With the 620,000 Bitcoin in February

The error occurred during a promotional campaign. Instead of distributing 620,000 won in cash, the system credited customer accounts with Bitcoin in the same numeric amount. The scale of the mistake drew immediate attention from regulators and media, since mixing up a cash figure with a coin count at this scale had not happened before.

Bithumb managed to recover 99.7% of the mistakenly credited funds. Some users still managed to sell coins before accounts were frozen, and a few traders tried moving funds to other platforms before the exchange issued an official explanation.

• The company recovered 99.7% of the mistakenly credited Bitcoin
• Users sold roughly 1,788 Bitcoin before accounts were frozen
• CEO Lee Jae-won acknowledged the failure at a parliamentary hearing on February 11

According to Lee Jae-won, the process for checking the planned amount against the company's actual holdings failed, and the promotional funds had not been set aside in a separate account in advance. He added that the team has since fully reworked its payout control process.

Competition Among South Korean Exchanges

Bithumb's push toward a listing coincides with active moves from rivals. Mirae Asset Consulting took control of exchange Korbit on July 23. Upbit operator Dunamu is preparing a share swap that would make it a subsidiary of Naver Financial, subject to approval from regulators and shareholders.

According to separate reports, brokerage firm Kiwoom Securities is also considering buying a stake in Bithumb. This fits a broader pattern. Large Korean brokerages and financial groups are racing to gain a foothold in the crypto market while it grows, and traditional banks and investment funds are seeking direct access to exchanges rather than building their own crypto units.

Additional pressure comes from problems at Bithumb-linked listed companies. Trading in shares of Vidente and Bucket Studio has been suspended since March 2023 over audit issues. According to Yonhap news agency, both companies recently appointed new auditors, former officials from the police and tax service. A government ethics committee found no conflict of interest in the appointments.

Bithumb will need to convince investors that the February failure will not affect the platform's reliability during its run-up to going public. The next two years will show whether the company can hold to the timetable it has set and whether it can beat rivals to the country's first crypto listing.