Crypto exchange Bithumb postpones IPO bid amid economic uncertainty

South Korea’s second-largest crypto exchange has postponed its plans to go public by at least two years.

The firm had planned to launch an initial public offering on the US-based Nasdaq stock exchange in the first half of 2026. But following a calamitous start to the year, with the firm facing fines and suspensions for compliance violations, shareholders have agreed to put its IPO plans on ice.

“It is highly likely that the listing will take place after the start of 2028,” a Bithumb spokesperson told South Korean newspaper Maeil Kyungjae. “We will focus on preparing for the listing for the remainder of this year and in 2027.”

Conversely, Bithumb’s closest and most bitter rival, Upbit, has unveiled its own ambitions to launch an IPO after it completes a proposed merger with the domestic tech giant Naver.

New deadline

Bithumb said it would strengthen its accounting policies and internal controls ahead of its new, flexible deadline.

“As we are pursuing the domestic crypto industry’s first-ever stock exchange listing,  we need to conduct extremely thorough internal verification checks,” Bithumb’s chief financial officer Jeong Sang-gyun told shareholders.

Unnamed financial experts told Maeil Kyungjae Bithumb’s delay was a “strategic move” aimed at optimising the timing of the IPO.

The move will help Bithumb choose a listing time that helps it “maximise corporate value,” the experts said.

The South Korean crypto industry expects major changes this year, with stablecoin regulations and other rule changes in the pipeline.

A tumbling won and uncertainty in Seoul about the direction of the war in the Middle East are further complicating factors.

And with Bithumb still recovering from early-year headaches, the firm’s executives want more breathing space.

Financial regulators have decided to punish Bithumb’s compliance violations with a six-month ban on new customer registrations, as well as a $28 million fine.

The firm has also been the subject of a consumer watchdog probe into its advertising claims.

It has also faced regulatory scrutiny after a fat-finger error that saw it accidentally gift hundreds of customers $40 worth of Bitcoin.

In rude health

Despite the early-year gloom, Bithumb enjoyed a largely positive financial year in 2025.

In its report to shareholders, the firm said its domestic market share now exceeds 30%, with 1.74 million new customers opening accounts in FY2025.

The company also posted net profits of $52 million, with sales up by 24% year-on-year.

Although shareholders expressed keenness to delay the IPO, there were also rumblings of discontent at the meeting.

Bithumb once again decided against paying shareholder dividends despite its positive 2025 results.

“Our competitor [the Upbit operator] Dunamu pays dividends. But there has been no news on this front from Bithumb, which has only paid dividends once to date,” a shareholder said.

To this, Bithumb CEO Lee Jae-won responded that Bithumb has been concentrating its capital on “expanding the company’s market share and increasing corporate value.”

Upbit, meanwhile, says its proposed merger with Naver has been hit with a three-month delay as regulators continue to deliberate on the deal.

Dunamu said it expected the merger to complete in September, South Korean media outlet Digital Today reported.

Officials told shareholders they would pursue an IPO “immediately” after the merger is finalised.

Tim Alper is a News Correspondent at DL News. Got a tip? Email him at tdalper@dlnews.com.