Bithumb, a South Korean exchange, is purportedly contemplating the possibility of entering the United States market.
Earlier today, the company disclosed this strategy at a shareholder meeting, acknowledging that it is “reviewing listing on the US Nasdaq.”
The company has initiated the process of conducting an Initial Public Offering (IPO) and anticipates listing in the second half of the upcoming year.
In March, Bithumb divided its human resources to concentrate on its core business, which is the exchange of virtual assets.
Bithumb A or Bithumb Investment is the proposed name for the new entity that will house the company’s non-core divisions, including its holding, investment, and real estate broking divisions.
Bithumb has previously pursued this course of action. The company attempted to list on the South Korean stock market, KOSDAQ, in 2020.
Nevertheless, they abandoned the concept as a result of the ambiguity surrounding the regulations surrounding crypto assets and accounting standards. “All possibilities are open,” stated a representative of the corporation, not only domestically but also internationally.
South Korea’s financial authorities do not even acknowledge digital assets as financial products. Additionally, the nation lacks Bitcoin ETFs.
Bithumb may be imitating Coinbase’s strategy. The Nasdaq has effectively listed Coinbase, the largest cryptocurrency exchange in the United States.
The Virtual Asset User Protection Act of South Korea, which was implemented on July 19, is designed to safeguard investors from unethical practices and mandates that virtual asset service providers (VASPs) adhere to rigorous regulations.
The law establishes numerous obligations, including insurance coverage for exchanges in the event of security intrusions or attacks. Additionally, exchanges are mandated to separate customer assets from their own funds to ensure the protection of investor funds in the event of an exchange’s failure.
In addition, the Korea Financial Intelligence Unit (KoFIU) requires VASPs to disclose any suspicious transactions. Serious penalties, such as prison time for illicit activities that generate over 5 billion won (approximately $3.7 million), may result from noncompliance.
Crypto trading is a popular activity among approximately three million South Koreans. Upbit, Bithumb’s primary competitor, holds nearly 80% of the South Korean market and has approximately 8 million registered users.
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