The South Korean crypto exchange Bithumb has overcome a key legal hurdle as it steps up its efforts to become the first platform in the nation to launch an IPO.
Per a report from the South Korean media outlet Business Post, the Supreme Court has ruled against the prosecution in a long-running fraud case involving the former Bithumb Holdings and Bithumb Korea CEO Lee Jung-hoon.
Bithumb is now “expected to speed up the initial public offering (IPO)” process, having cleared up the “legal risks” surrounding Lee. The latter is also a major Bithumb shareholder. The outlet noted that individuals “both inside and outside the cryptocurrency industry” now also “believe that Bithumb will accelerate its IPO bid this year.”
The exchange was also quoted as telling the outlet that it had made “no changes” to its goal” to launch “an IPO in 2025.”
Bithumb has gone on record as stating that it is “pursuing an IPO.” The company has appointed Samsung Securities as its manager, and has spoken of its hope of “targeting a 2025 launch.”
The company began exploring its IPO options back in 2020. But it was later forced to shelve its plans due to legal concerns over Lee, who was indicted in July 2021.
If this “trial” proves successful, regulators have indicated they will follow up by letting companies buy tokens like Bitcoin (BTC) with their balance sheets.
Regulators are set to finally allow banks and other companies to invest in the crypto market this year. The financial authorities have already unveiled plans to allow a small group of institutional investors to access the crypto markets on a “trial basis” later this year.
Experts said that market conditions are now turning favorable for Bithumb in South Korea.
Experts are also optimistic about Bithumb’s new banking partnership with Kookmin Bank (KB), the nation’s largest banking firm.
Insiders claim that corporations and institutional investors can invest more money than can the retail sector. And they say this could help domestic exchanges “increase their profitability.”
The FIU launched an on-site inspection at Bithumb on March 17, which will wrap up on March 28. The regulator wants to investigate Bithumb’s compliance with anti-money laundering (AML) obligations, among other matters.
At least two key hurdles remain in Bithumb’s way as it continues its IPO bid. The first of these is uncertainty over an ongoing probe from the regulatory Financial Intelligence Unit (FIU).