Bithumb Crypto Exchange Plans To Go Public on US Nasdaq

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As a researcher with extensive experience studying the global cryptocurrency market, I find Bithumb’s ambition to list on the US Nasdaq both intriguing and strategic. Having closely observed the evolution of this exchange over the years, it’s clear that their decision to halt the KOSDAQ listing in 2020 was a wise move considering the regulatory uncertainties at the time.

Bithumb, South Korea’s second-largest cryptocurrency trading platform, has disclosed plans to potentially list its shares on the American stock exchange Nasdaq. This announcement was made during a temporary shareholders gathering held on September 30th, where management discussed the company’s strategic growth and international market expansion roadmap.

South Korea’s Bithumb Eyes Nasdaq Listing in Global Expansion Push

Bithumb aims to boost its international influence by considering a listing on Nasdaq. The exchange plans to issue shares publicly, or an IPO, during the second half of next year, with Samsung Securities serving as the principal underwriter. This strategic move aims to leverage the increasing global curiosity towards virtual asset exchanges by associating with the world’s most prominent and renowned market leaders.

In light of its earlier plans to list on South Korea’s KOSDAQ market in 2020, which were put on hold because of unclear regulatory and financial guidelines regarding cryptocurrencies, Bithumb is now considering targeting the US Nasdaq instead.

Moving towards a U.S. stock exchange listing is driven by two reasons: a desire to draw in international investors and a tactical decision to operate within a potentially friendlier regulatory landscape.

Furthermore, in March, Bithumb underwent a major reorganization by splitting its human resources to establish a new business dedicated to investment and real estate trading. This strategic separation led to the creation of Bithumb Investment, an entity responsible for overseeing the holding company’s varied assets.

Furthermore, this action served as a precursor to the Initial Public Offering (IPO), as it honed in on its main trading platform business. This strategic step aims to enhance its fiscal strength and attract potential investors with its improved financial standing.

The revamped organization will persist in its major role of facilitating cryptocurrency trading, aiming to optimize processes and boost productivity. This internal transformation is an essential step towards achieving a public stock offering on the U.S. Nasdaq. This strategic move involves showcasing a clear-cut business strategy and a financially sound foundation.

Challenges and Opportunities in Domestic Markets

Moving forward with an international listing expands our investor base and provides a global platform, but there are ongoing issues, particularly in the home market. At present, South Korea does not have a regulatory framework for Bitcoin ETFs, and financial authorities do not classify virtual assets as financial products. This lack of recognition creates difficulties for a domestic listing.

Under these circumstances, the trading platform is exploring opportunities in global markets, following in the footsteps of exchanges like Coinbase who have been listed on the U.S. Nasdaq. Notably, a Korean cryptocurrency exchange recently avoided a substantial 130 million won corporate tax penalty, indicating the growing complexities in South Korea’s regulatory landscape.

Additionally, the cryptocurrency exchange is working towards boosting its brand recognition. At a recent shareholders’ gathering, it was decided to change Bithumb Korea to just Bithumb. This rebranding move is part of a larger initiative to fortify its market standing as it gears up for its upcoming listing on the US Nasdaq, aiming to operate as a public company.

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2024-09-30 15:24