Bithumb, South Korea’s second-largest cryptocurrency exchange, has announced its plans to list on the Nasdaq in the U.S.
The cryptocurrency exchange Bithumb, which is the second largest in South Korea, has made an official announcement regarding its intentions to seek listing on the Nasdaq in the United States.
The company’s shareholders held a temporary meeting on September 30 to make the announcement. During this meeting, the management presented the future course of action for the growth and expansion of the company’s market.
South Korea’s Bithumb Eyes Nasdaq Listing in Global Expansion Push
In order to strengthen its footprint on a worldwide scale, Bithumb has committed to achieving its goal of listing on the Nasdaq stock exchange. The exchange plans to conduct an initial public offering (IPO) in the second half of the following year, with Samsung Securities serving as the primary underwriter.
With this move, the company will associate itself with the largest and most renowned market participants in the world, thereby capitalising on the growing interest in virtual asset exchanges that is occurring all over the world.
Bithumb made the decision to approach the Nasdaq in the United States after preparing for a listing on the KOSDAQ market in 2020. On the other hand, the exchange decided to stop the process because the regulatory and accounting rules for virtual assets at the time were not entirely clear.
The shift in focus to a listing in the United States, which represents both an aspiration to attract foreign investors and a strategic move, reflects this strategic move to a location where the regulatory environment may be more favorable.
Additionally, in March, Bithumb began a massive restructure by separating its human resources in order to establish a separate entity that would concentrate on investment and real estate brokerage. This strategic segmentation established Bithumb Investment as an organization to manage the holding company’s various interests.
Furthermore, by focusing on the company’s core exchange business, this action was a step towards preparing for the initial public offering. As a result of the project, its financial health will improve, and it will increase its appeal to potential investors.Therefore, the reorganized firm will continue to focus on its main activity, cryptocurrency exchange, simplifying operations and improving efficiency.
We are implementing this organizational reform as part of a strategy to meet the requirements for a public listing on Nasdaq in the United States. These requirements include proving a focused business model and securing financial footing.
Despite the fact that the international listing will make available a larger pool of investors and a worldwide platform, difficulties still exist, notably in the domestic market. As of right now, South Korea does not have a framework for Bitcoin exchange-traded funds (ETFs), and the country’s financial authorities do not acknowledge virtual assets as financial instruments.
This makes it more difficult to achieve the potential of a local listing.Because of these circumstances, the exchange has begun to focus its attention on international markets, where other exchanges, such as Coinbase, have successfully listed on the Nasdaq in the United States.
Just one month ago, the Korean cryptocurrency exchange successfully avoided a large corporation tax bill of 130 million won. This is evidence of the rising difficulties in South Korea’s regulatory environment. In addition to this, the cryptocurrency exchange intends to raise the visibility of its brand.
Not too long ago, a meeting of shareholders reportedly approved the move to rebrand Bithumb Korea to just Bithumb. This branding strategy is part of a larger effort to boost its market position and prepare for its future as a publicly listed business on the Nasdaq in the United States.
