Bithumb, South Korea’s largest crypto exchange by volume, is making headlines once again—this time for regaining over 25% of the nation’s crypto market share, just months ahead of its ambitious $1 billion IPO scheduled for the second half of 2025. Founded in 2014 as Xcoin and rebranded in 2015, Bithumb once commanded over 70% of Korea’s digital asset trading. But hacks, management scandals, and regulatory heat led to a steep decline in user trust, giving rival Upbit an edge through a partnership with Kbank, a digital-only bank that simplified customer onboarding. However, in 2024, Bithumb initiated a full-scale comeback. By increasing its marketing budget to ₩192 billion, a tenfold rise from 2023, the platform surged to a 36% market share in January, and although that figure has settled around 25%, it still marks a dramatic leap from the single-digit share it held just two years ago.
Bithumb IPO Plans Signal Institutional Confidence
Bithumb’s resurgence aligns with its plan to go public. The company has selected Samsung Securities as the lead underwriter for its KOSDAQ listing and is also exploring a dual listing on the U.S.-based NASDAQ, according to KRX. The IPO, expected in late 2025, aims to raise $1 billion and attract global investor interest.
To prepare, Bithumb is restructuring its corporate organization. A key move included the July 31 spin-off of NYC 5G (Bithumb A), designed to isolate core trading operations from ventures in blockchain research, consulting, and NFTs. Analysts say this simplification will help streamline governance and boost transparency ahead of the listing.
Regulatory Scrutiny Remains a Challenge
Despite its financial and operational improvements, Bithumb remains under tight regulatory scrutiny in South Korea, which maintains some of the toughest crypto compliance standards globally. In early 2025, the Financial Services Commission issued warnings over KYC compliance issues, linked to 400 suspected accounts flagged for irregular activity.
Bithumb has faced past legal issues involving former executives accused of fraud and embezzlement, further prompting the exchange to commit to transparency in the lead-up to its IPO.
The intense regulatory landscape has forced many smaller exchanges out of the South Korean market. Only Bithumb and Upbit remain dominant, as foreign players like Binance have struggled with South Korea's stringent privacy and operational requirements.
The Battle for Korea’s Crypto Future
Bithumb’s re-entry as a major player is reshaping the competitive landscape in Korea’s digital currency space. While Upbit retains a strong foothold, Bithumb's financial firepower, structural changes, and IPO momentum could mark a new era in the domestic crypto exchange ecosystem.
Investors and traders alike are closely watching how Bithumb balances growth, regulation, and public listing ambitions, especially amid global scrutiny of centralized exchanges.
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