Despite being embroiled in a series of financial and legal issues that have put a dark cloud over its operations in recent months, South Korean crypto exchange Bithumb is still aiming to pursue an initial public offering (IPO). Though its plans may be delayed due to the current “deep troubles,” the exchange is still intent on listing its shares publicly.
In June 2020, the exchange suspended its withdrawal and deposit services because it was undergoing an audit by the government. Two months later, the exchange chose to suspend withdrawal and deposit services completely after additional security protocols became a necessity and questions regarding the exchange’s founder and its relationship with the US banking system arose.
Though Bithumb has resumed its services since then, its troubles have not completely subsided. According to reports, the Financial Services Commission (FSC) is alleged to have pointed out many issues with the way the exchange handled its online businesses and customer privacy. The regulator has also been reportedly asking the exchange to clarify the operations that had taken place before the government audit.
Despite all of this, Bithumb is determined to pursue an IPO in 2021. While the exchange did not reveal a specific timeline for it, the Chairman of the exchange suggested that the listing could be delayed due to its present troubles. During an interview, the Chairman mentioned that the exchange will need to examine the financial and legal issues thoroughly before going ahead with the plans.
Despite the ongoing troubles, Bithumb is still confident that there is a potential for the exchange to eventually list its shares and become a long-term player in the industry. This could potentially give the exchange a greater level of legitimacy and set a precedent for other exchanges. In the meantime, however, the exchange will need to resolve the lingering issues for its plans to move forward.