Bithumb now holds 25% of South Korea's crypto trade after a strong push in marketing and restructuring.
The exchange plans a one billion dollar IPO and a split into two units to boost transparency and operations.
Strict crypto rules in South Korea have pushed out smaller firms and helped Bithumb and Upbit dominate the market.
Bithumb has recovered a major share of South Korea’s cryptocurrency trading market. The exchange now handles around 25% of total crypto trade volume in the country. This marks a sharp rise from its position in 2023 when its presence had significantly declined.
https://twitter.com/WuBlockchain/status/1924626341351325855 Market Share Shifts Highlight Growing Competition
According to Kaiko, Bithumb had 36% of the market share in early 2024. Still, the share it has now of the market points to an upward trend. This increase reflects that people are more interested in the platform despite tough competition. The market is dominated by Upbit which holds around 60% of the share. According to data from 2023, it had 75% of the market.
Both exchanges now control the majority of crypto trading within South Korea. Smaller competitors continue to exit due to strict government rules.
Past Struggles Shaped Bithumb's Comeback Strategy
Bithumb was established as Xcoin in 2014 and controlled over 70% of the market back then. Due to various security incidents such as a $30 million hack in 2018, the company collapsed. At the same time, Upbit achieved growth by teaming up with Kbank to simplify onboarding for digital users.
In response, Bithumb expanded its marketing budget aggressively between 2023 and 2024. Spending rose from 16 billion won to 192 billion won. As a result, user numbers began to rise again. This shift reflects growing competition among local exchanges.
IPO Plans Signal Growth Ambitions
Bithumb is preparing for an initial public offering valued at $1 billion. The IPO is expected to launch in the second half of 2025. The exchange will list on South Korea’s KOSDAQ market. Plans are also in motion for a secondary listing on NASDAQ in the United States. Samsung Securities will manage the IPO process.
To prepare, Bithumb has decided to restructure its corporate organization. On July 31, 2025, the company will split into two entities. Bithumb Korea will focus on the exchange and IPO. Bithumb A will oversee asset management, personal investment, and subsidiaries.
After the split, Bithumb Korea will hold 56% of the business. Bithumb A will retain 44%. This reorganization aims to improve transparency and management efficiency.
Regulation Drives Market Consolidation
South Korean rules have increased pressure on exchanges. Authorities flagged over 400 suspicious accounts linked to Bithumb earlier this year. This led to warnings about possible regulatory suspension. As a result, foreign players like Binance now struggle to compete.
Due to stricter rules, crypto trading in South Korea has become more localized. However, political voices ahead of the presidential election are calling for crypto-friendly reforms. Some support fewer restrictions on Bitcoin ETFs and greater foreign investment access.
