Bithumb, one of South Korea's leading cryptocurrency exchanges, has announced a significant delay in its plans to go public, pushing the anticipated stock market listing to 2028. This decision comes in the wake of a major accounting error that has raised concerns among regulators and prompted a comprehensive review of the exchange's internal practices. The source notes that such regulatory scrutiny is becoming increasingly common in the crypto industry.
Delay in Bithumb's Listing Plans
The delay is primarily attributed to the need for Bithumb to overhaul its accounting systems and internal controls. Following a recent emergency inspection by the Financial Services Commission (FSC), it was revealed that many crypto exchanges, including Bithumb, were not maintaining adequate records of their asset holdings. As a result, the FSC has mandated that all exchanges reconcile their internal records with actual asset holdings every five minutes to enhance transparency and accountability.
Revised Timeline and Compliance Measures
Bithumb's revised timeline now extends its listing plans by at least three years from the original target of 2025. The exchange is prioritizing the implementation of stricter financial policies and controls to ensure compliance with regulatory standards and to restore confidence among investors and stakeholders in the wake of the accounting error.
Recently, Senator Richard Blumenthal intensified his scrutiny of Binance, raising concerns about the exchange's compliance with U.S. regulations, particularly in light of Bithumb's recent accounting issues. For more details, see this article.
