South Korean cryptocurrency exchange Bithumb is preparing for a potential initial public offering in 2028, setting out a multi-year restructuring plan aimed at strengthening corporate governance, improving accounting standards, and tightening internal controls following a major operational error earlier this year.
The company plans to apply for a preliminary listing review in 2027, putting it on track for a public-market debut the following year. However, Bithumb acknowledged that the timeline remains flexible and could change depending on market conditions and regulatory review schedules.
Bithumb Restructures Ahead of Public Listing
Preparing a cryptocurrency exchange for the scrutiny associated with becoming a publicly listed company requires substantial changes beyond simply meeting financial targets.
Bithumb said it has begun reorganizing its corporate structure to establish clearer divisions between different areas of its business and reduce potential conflicts of interest.
A significant part of this restructuring involves the spin-off of Bithumb Asset, allowing responsibilities and operations across the group’s different businesses to be more clearly separated.
The restructuring is intended to improve transparency and accountability while creating a corporate structure better suited to the governance requirements expected of publicly traded companies.
Internal Controls Become a Major IPO Priority
Strengthening internal controls will form another central component of Bithumb’s IPO preparations.
The exchange intends to overhaul procedures governing financial transactions, operational approvals, asset management, accounting, and risk oversight.
These improvements have taken on greater importance following a significant operational incident earlier in 2026 that exposed weaknesses in the exchange’s internal verification processes.
As part of its preparations, Bithumb also intends to transition from its existing domestic accounting framework to Korean International Financial Reporting Standards (K-IFRS).
K-IFRS is the accounting framework used by publicly listed companies in South Korea and is designed to provide investors and regulators with greater consistency and transparency when evaluating corporate financial statements.
620,000 BTC Crediting Error Raises Control Concerns
The IPO preparations follow an extraordinary incident in February in which Bithumb mistakenly credited customers with balances totaling approximately 620,000 Bitcoin during a promotional campaign.
The exchange had intended to distribute 620,000 Korean won in cash rewards, but an operational error resulted in Bitcoin balances being credited instead.
Bithumb eventually recovered approximately 99.7% of the incorrectly allocated assets, limiting the financial impact of the mistake.
However, customers reportedly managed to sell approximately 1,788 BTC from the erroneous balances before affected accounts could be frozen.
The scale of the incident attracted regulatory and political scrutiny and raised questions about the safeguards governing asset distributions on cryptocurrency exchanges.
CEO Acknowledges Verification Failure
The issue subsequently reached South Korea’s National Assembly, where Bithumb CEO Lee Jae-won addressed lawmakers during a parliamentary hearing.
Lee acknowledged that the company’s internal process failed to properly compare the amount scheduled for distribution with the assets actually available for the promotion.
The promotional funds had also not been separated into a dedicated account beforehand, eliminating another potential safeguard that could have prevented the error.
For a company pursuing a public listing, the incident demonstrated why stronger operational checks, independent verification procedures, and financial controls will likely become essential components of its IPO preparations.
Competition Intensifies Across South Korea’s Crypto Industry
Bithumb’s public-market ambitions arrive as South Korea’s cryptocurrency industry undergoes broader consolidation and deeper integration with traditional finance.
Bithumb remains one of the country’s major cryptocurrency exchanges permitted to support Korean won trading through real-name bank accounts, operating its banking partnership through KB Kookmin Bank.
Meanwhile, competitors are pursuing their own strategic transformations.
Mirae Asset Consulting recently took control of cryptocurrency exchange Korbit, strengthening the connection between South Korea’s conventional financial sector and its digital asset industry.
At the same time, Dunamu, operator of Upbit, is pursuing a share-swap arrangement that could ultimately make the company a wholly owned subsidiary of Naver Financial, subject to shareholder and regulatory approvals.
Together, these developments point toward increasing convergence between cryptocurrency platforms, financial institutions, and major technology companies within South Korea.
Bithumb-Linked Companies Face Separate Listing Challenges
Bithumb’s IPO preparations are also unfolding against complications involving publicly traded companies connected to the exchange.
Major shareholder Vidente, along with Bucket Studio, which indirectly controls Vidente, has faced prolonged trading suspensions dating back to March 2023 because of auditing and listing-related issues.
Both companies have subsequently moved to strengthen their oversight structures by appointing former government officials to auditing positions.
South Korea’s Government Public Service Ethics Committee reportedly approved the appointments after determining there was no significant conflict between the officials’ previous government responsibilities and their proposed corporate roles.
IPO Could Mark a Turning Point for Bithumb
Successfully completing an IPO would represent a significant transformation for Bithumb, shifting the exchange toward the disclosure, governance, accounting, and operational standards expected of a publicly traded financial company.
But the path toward 2028 will require more than corporate restructuring.
The February crediting incident demonstrated how weaknesses in internal controls can rapidly become financial, regulatory, and reputational risks for large cryptocurrency platforms.
By strengthening oversight, adopting K-IFRS accounting standards, separating business functions, and improving operational safeguards, Bithumb is attempting to demonstrate that its infrastructure and governance can withstand the scrutiny accompanying a public listing.
If the company completes its preliminary review in 2027 and proceeds with its planned IPO in 2028, the listing could become an important milestone not only for Bithumb but for the broader institutionalization of South Korea’s cryptocurrency industry.
