Bithumb, South Korea's second-largest cryptocurrency exchange by trading volume, announced Tuesday that it is pursuing an initial public offering (IPO) by 2028, following a comprehensive overhaul of its corporate governance, internal controls, and financial reporting framework.

If completed, the listing would place Bithumb among the first major cryptocurrency exchanges globally to go public through a traditional IPO. Coinbase, the largest U.S.-based exchange, went public via a direct listing on Nasdaq in 2021 rather than through a conventional IPO process.

The company outlined a multi-year roadmap that begins this year with upgrades to its internal control systems and a transition to Korean International Financial Reporting Standards (K-IFRS). K-IFRS is the Korean adoption of the globally recognized IFRS accounting framework, widely used by publicly listed companies in Korea. Bithumb is shifting away from Korean Generally Accepted Accounting Principles (K-GAAP) as part of this process.

Under the plan, Bithumb intends to seek a preliminary listing review in 2027 and aims to complete its IPO the following year. The company noted, however, that the proposed timetable remains subject to change based on market conditions and the outcome of the review process.

The governance overhaul comes amid a shifting regulatory landscape for digital assets in South Korea. The Virtual Asset User Protection Act, which took effect in July 2024, established the country's first comprehensive legal framework for cryptocurrency exchanges, imposing stricter requirements on customer asset protection, conflict-of-interest safeguards, and reporting obligations. Bithumb's roadmap reflects broader efforts by Korean exchanges to align with institutional-grade compliance standards under the new regime.

To prepare for the listing, Bithumb is working with domestic and international securities firms, law firms, and accounting firms. The exchange plans to align its risk management and internal controls with the standards expected of regulated financial institutions. It will also strengthen customer asset management and disclosure practices.

Bithumb completed a corporate restructuring last year, splitting its exchange operations from its new business ventures. Following the split, Bithumb continues to operate the cryptocurrency exchange, while a separate entity, Bithumb Asset, oversees new businesses and investments. The restructuring was intended to simplify the organization and improve governance by separating operating functions from investment activities.

The exchange also intends to reduce its historical reliance on transaction fee revenue by expanding its investment activities through Bithumb Investment and other affiliates. Bithumb stated that a more diversified revenue base would enhance earnings stability and help secure liquidity after the listing. Reducing dependence on trading fees has become a strategic priority for exchanges across the industry, as fee-based revenue tends to fluctuate with market cycles and trading volume.

Bithumb already publishes regular disclosures of its financial position and cryptocurrency holdings. As it advances toward an IPO, the company plans to broaden its communication with investors.

"This IPO is more than a listing," a Bithumb official said. "It is an effort to raise the transparency and stability of a cryptocurrency exchange to the level expected of regulated financial institutions."