Bithumb delays IPO to 2028 amid regulatory crackdown and compliance failures

South Korean cryptocurrency exchange Bithumb has delayed its initial public offering (IPO) until 2028. The company originally planned to list in late 2025 but now faces regulatory scrutiny and internal challenges.

The postponement comes as authorities investigate its risk management systems and impose heavy fines for compliance failures. Bithumb first set its sights on a 2025 IPO but pushed back the timeline after a series of setbacks. In a recent shareholders meeting, Chief Financial Officer Jeong Sang-gyun confirmed the delay, citing the need for stronger accounting and internal controls before listing. The exchange has since signed an advisory agreement with Samjong KPMG, extending support until the end of 2027.

Regulatory pressure has intensified after South Korea's Financial Supervisory Service launched a probe into Bithumb's internal controls. The Financial Intelligence Unit later fined the company 36 billion won (around $27 million) and ordered a partial suspension of its operations. These issues follow a major blunder in 2023, when Bithumb mistakenly distributed about 620,000 BTC—worth an estimated $43 billion—during a promotional campaign.

Despite these challenges, Bithumb reported 651 billion won ($430 million) in revenue for 2025. The exchange also briefly regained over 30% of the domestic market share that year. However, its position has weakened since 2023, with rival Upbit maintaining dominance in trading volume and user numbers. Competitive pressure and regulatory hurdles have steadily eroded Bithumb's standing in South Korea's crypto market. Bithumb now targets a 2028 listing, giving it more time to address regulatory concerns and improve financial oversight. The company's revenue and market share show resilience, but its path to going public remains uncertain.

Authorities will continue monitoring its compliance efforts as it prepares for the delayed IPO.