Bithumb Korea, the operator of the South Korean cryptocurrency exchange Bithumb, reported a significant decline in annual revenue for the fiscal year of 2023.
The annual sales revenue of Bithumb Korea plummeted by 57.6% to 1.358 billion Korean won in 2023, compared to 3.201 billion won in 2022.
Net profit also witnessed a substantial decrease, falling by 74.5% to 243 billion won in 2023 from 954 billion won in the previous year. Despite this decline, Bithumb managed to remain in a surplus for the fourth consecutive year.
The primary factor behind the financial losses was attributed to the overall decrease in the value of cryptocurrencies during the crypto winter. Additionally, Bithumb’s fee-free trading policy during the fourth quarter of 2023 contributed to the decline in revenue.
Despite the challenging market conditions, Bithumb focused on expanding its availability throughout South Korea in 2023. The exchange plans to continue strengthening its services in the current year to drive performance improvements.
The announcement of Crypto.com’s launch of a cryptocurrency trading app for South Korean retail investors on April 29 poses a potential threat to Bithumb’s market share in the country.
Bithumb’s Initial Public Offering (IPO) plans have been delayed amid internal issues and evolving regulatory landscape.
Initial Plans: Bithumb had initially aimed to become the first digital asset company to go public on the South Korean stock market. Reports emerged in November 2023, suggesting plans for an IPO on the Kosdaq in the second half of 2025.
Reconsideration: However, Bithumb has reconsidered its IPO ambitions, partly due to scrutiny over former chairman Lee Jeong-hoon’s role in the company. This development indicates internal issues within the company.
Regulatory Changes: The delay in the IPO plans coincides with proposed regulatory changes by South Korea’s Financial Services Commission (FSC), which would mandate new crypto firm executives to obtain regulatory approval before assuming their roles. This regulatory uncertainty may have contributed to Bithumb’s reassessment of its IPO strategy.
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