Bithumb Regains 25% Market Share in South Korea Ahead of IPO Debut

Highlights:

• Within Q1 of 2025, Bithumb made up 25% of the country’s crypto trading volume.
• The exchange is preparing for a $1 billion IPO on Kosdaq, with a possible NASDAQ listing.
• With strict regulations in place, only Bithumb and Upbit dominate the Korean market.

Bithumb has managed to win back a big share of the South Korean cryptocurrency market. According to a recent Bloomberg report, the exchange now manages about a quarter of all the crypto trading volume in the country. This is a big improvement from the company’s small share of the market seen in 2023. According to Kaiko, Bithumb had a market share of 36% earlier in 2024 but fell back to its recent level.

Bithumb, formally launched in 2014 as Xcoin became well-known in South Korea at one point by dominating a 70% share of the market. Following several hacks, including the $30 million one in 2018, it began to fall. On the other hand, Upbit moved ahead after entering into a deal with Kbank, allowing for digital signups by new users. However, the increase in Bithumb’s usage since 2024 reflects increasing competition amongst South Korean crypto exchanges.

Between 2023 and 2024, Bithumb decided to increase its marketing budget from 16 billion won to 192 billion won. Consequently, the exchange managed to increase its market share once again. Despite increased competition, Upbit is still the top player in the market, with about 60%, down from 75% in 2023. Currently, these two exchanges oversee most of the cryptocurrency trading in South Korea.

According to Bloomberg, South Korean crypto exchange Bithumb has expanded its market share to around 25% of the country's total crypto trading volume, up from single digits in 2023. The growth is driven by aggressive marketing, helping it regain users from rival Upbit. Bithumb is…

— Wu Blockchain (@WuBlockchain) May 20, 2025

IPO Preparation and Corporate Restructuring

Bithumb is working towards a $1 billion IPO, which they plan to start in the second part of 2025. The exchange plans to be listed on South Korea’s KOSDAQ stock market. It is also planning a secondary listing on NASDAQ in the United States to gain the interest of foreign investors. Samsung Securities will lead the underwriting of the IPO.

Bithumb, South Korea's second largest cryptocurrency exchange, announced at an extraordinary shareholders' meeting that it is considering listing on the Nasdaq in the United States, with the goal of listing in the second half of next year, with Samsung Securities as the main…

— Wu Blockchain (@WuBlockchain) September 30, 2024

Prior to the public offering, Bithumb adjusted its corporate structure to improve how it operates. On July 31, 2025, the company will become two businesses: Bithumb Korea and Bithumb A. Bithumb Korea will focus on the exchange business and the KOSDAQ listing. Meanwhile, Bithumb A takes on responsibilities for asset management, personal investments, and subsidiaries, one of which is Bithumb Partners.

As a result of the split, Bithumb Korea will own a 56% stake in the exchange and Bithumb A will retain 44%. The objective of separation is to enhance management and transparency in the organization. The shift takes place after several years of issues with leading executives, followed by investigations into fraud and embezzlement.

Regulatory Environment and Market Dynamics

There is a strict set of regulations for cryptocurrency exchanges in South Korea. The rules have caused small players to withdraw from the market, resulting in Bithumb and Upbit becoming the top two exchange providers. They are both subject to continuous regulation, mainly about KYC and monitoring user accounts.

Early this year, Bithumb was issued warnings about the risk of regulation suspension due to KYC violations. Authorities flagged over 400 suspicious accounts and this motivated the Financial Services Commission to step in. Due to these developments, smaller companies and foreign exchanges like Binance are finding it more difficult in the industry.

Strict regulations have steered crypto trading operations in South Korea to become more domestic. However, new voices are now appearing in the debate of presidential elections in favor of a crypto-friendly administration. Some candidates have recommended removing roadblocks for Bitcoin ETFs and increasing investment options for overseas investors.