Significant Developments in South Korea’s Cryptocurrency Landscape
In a significant development for the cryptocurrency landscape in South Korea, the well-known exchange Bithumb has announced plans to create a spinoff company as it progresses toward an initial public offering (IPO). The company is aiming for a listing on KOSDAQ within the first half of 2026, although industry analysts express caution over unresolved ownership issues that could impact its success.
Bithumb’s IPO Initiative
The green light for Bithumb’s IPO initiative follows a pivotal Supreme Court decision in March that cleared former Chairman Lee Jung-hoon of fraud accusations. This ruling enabled Bithumb to formally seek the approval of the Financial Services Commission (FSC) for its spinoff plans. While the initial applications met with hurdles, Bithumb revised its approach multiple times, ultimately receiving the FSC’s endorsement at the end of June. This affirmed that Bithumb would retain its current operational identity while establishing a new entity.
The prospective holding company, provisionally called Bithumb A, is intended to drive new investment ventures linked to Bithumb. It has enlisted Samsung Securities to oversee the KOSDAQ listing process, which is currently in the due diligence phase. The restructuring strategy aims to enhance operational efficiency by delineating the functions of its various branches, thereby fostering flexibility in exploring new business opportunities.
Concerns Over Governance Structure
However, lingering concerns regarding Bithumb’s governance structure are casting a shadow over this ambitious plan. Market observers have pointed out that the complex ownership dynamics among major shareholders, including Bithumb Holdings, DAA, and Vidente, remain unclear, leading to investor unease. According to insider commentary, without demonstrating greater transparency, Bithumb may struggle to attract external investment reputation needed for its growth.
Related Developments in South Korea’s Banking Sector
In a separate but related development within South Korea’s banking sector, BNK Busan Bank has recently joined the Stablecoin Division of the Open Blockchain/DID Association (OBDIA), marking its commitment to the burgeoning stablecoin market. The bank is collaborating on extensive research initiatives to develop a currency model that accommodates digital transactions within the local economy. OBDIA, established in 2018, revitalized its efforts earlier this year by establishing a subgroup dedicated to stablecoins, attracting participation from major financial institutions such as Kookmin, Shinhan, and Woori.
These developments occur in a broader regulatory context as South Korean lawmakers are working on a legislative framework to enable the issuance of private-sector stablecoins, signaling a gradual shift in policy from the comprehensive ban imposed on token issuance since 2019.
