South Korean cryptocurrency exchange Bithumb announced Monday that it intends to apply for a preliminary listing review in 2027 and complete its initial public offering in 2028, marking a significant step toward becoming a publicly traded company.

As part of its pre-IPO preparations, Bithumb has reorganized its corporate structure, including spinning off Bithumb Asset. The move is designed to clarify operational responsibilities across its business units and mitigate potential conflicts of interest before undergoing the listing review.

The exchange also plans to upgrade its internal controls and transition from domestic accounting standards to K-IFRS, the international accounting framework adopted by publicly listed companies in South Korea. The transition is a standard prerequisite for companies seeking to list on the Korea Exchange, as it provides the transparency and disclosure standards expected of public companies. Bithumb cautioned that the proposed timetable remains subject to change based on market conditions and the review schedules of relevant regulatory authorities.

Bithumb is one of five South Korean cryptocurrency exchanges authorized to facilitate fiat currency trading through real-name bank accounts, operating in partnership with KB Kookmin Bank. The real-name verification system, mandated under South Korea's anti-money laundering framework, requires exchanges to partner with banks to verify customer identities before enabling deposits and withdrawals in Korean won.

The exchange's push toward a public listing coincides with broader consolidation between South Korean crypto platforms and traditional financial institutions. On July 23, Mirae Asset Consulting acquired control of rival exchange Korbit. Separately, Dunamu, the operator of Upbit, is pursuing a share-swap agreement that would make it a wholly owned subsidiary of Naver Financial, pending regulatory and shareholder approval.

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Bithumb's 620,000 BTC Crediting Error

Bithumb's IPO roadmap follows a significant operational mishap in February, when a promotional campaign went awry. The exchange erroneously credited customer accounts with balances totaling 620,000 Bitcoin instead of distributing the intended 620,000 Korean won in cash rewards.

Bithumb reported recovering 99.7% of the erroneous credits. However, customers managed to sell approximately 1,788 BTC before the affected accounts were frozen.

At a February 11 National Assembly parliamentary hearing, Bithumb CEO Lee Jae-won acknowledged that the exchange's reconciliation process—intended to verify the planned distribution against actual holdings—had failed. He also confirmed that the promotional funds had not been segregated into a separate account. The incident underscored the internal control gaps that Bithumb's planned overhaul aims to address ahead of its listing review.

The IPO preparations unfold against a backdrop of ongoing audit and listing difficulties for two Bithumb-affiliated public companies. Vidente, a major Bithumb shareholder, and Bucket Studio, which indirectly controls Vidente, have had share trading suspended since March 2023 due to audit deficiencies and other listing-related issues.

According to Yonhap news agency, Bucket Studio appointed a former police official as its standing auditor in June, while Vidente intends to name a former National Tax Service official to the same position. South Korea's Government Public Service Ethics Committee approved both appointments after determining that no close relationship existed between the officials' prior duties and their new corporate roles.

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