Nikolas Sargeant
South Korean crypto exchange Bithumb is facing increased regulatory and parliamentary scrutiny over its ownership structure while pursuing an initial public offering (IPO).
Major Shareholders Under Investigation
At an October 24 National Assembly Political Affairs Committee meeting, legislators called for financial authorities to investigate the exchange's ownership. The Financial Services Commission (FSC) announced plans to conduct its own review into the matter.
The ownership structure involves complex shareholdings through various companies. Vidente, a stock market-listed company, owns a 34.22% stake in Bithumb Holdings. Several individuals with significant shareholdings in Bithumb-linked firms face ongoing legal challenges over allegations including embezzlement and price manipulation related to past altcoin listings.
Regulatory Oversight Expansion
At the National Assembly meeting, People Power Party representative Kwon Seong-dong highlighted concerns about major shareholders facing fraud charges and investigations for financial misconduct, issues previously raised in a 2022 National Assembly audit.
FSC Chairman Kim Byung-hwan acknowledged current limitations in regulatory authority but indicated steps toward change. The FSC has submitted a bill to amend the Special Financial Information Act to enable review of major shareholders.
IPO Plans Continue
Bithumb, launched in 2014, has Bithumb Holdings as its largest known shareholder with a 73.56% stake. The company has separated its crypto exchange operations from other business areas as it works toward becoming South Korea's first stock exchange-listed platform.
The exchange aims to complete its IPO by the end of next year. While initially targeting the Korea Exchange, plans have shifted to pursue a NASDAQ listing instead.
