Bithumb Claws Back 25% Market Share in Korea Ahead of IPO

Key Takeaways

• Bithumb now controls 25% of South Korea’s crypto trading volume, solidifying its spot as the second-largest exchange in the country.
• Rival Upbit remains dominant, despite facing regulatory scrutiny over the past year.
• South Korea’s strict compliance rules have forced out most smaller players, concentrating market power in the hands of Bithumb and Upbit.

South Korea’s second-largest crypto exchange, Bithumb, is quietly staging a comeback.

Once a dominant force in the country’s crypto market, the platform has now climbed back to 25% market share as it prepares for a long-awaited initial public offering (IPO) by the end of 2025.

The resurgence comes after years of decline following major security breaches, including a $30 million hack in 2018.

However, with aggressive marketing and a string of regulatory troubles haunting its chief competitor, Upbit, Bithumb is regaining ground.

Bithumb’s Market Share Rebounds

According to data from Kaiko , Bithumb’s share of South Korea’s crypto trading volume has jumped from the single digits in 2023 to 25% at press time.

The platform even peaked above 33% in the first quarter of 2024 before stabilizing at its current level.

This marks a major turnaround for an exchange that once commanded more than 70% of the market before falling behind due to technical setbacks and regulatory challenges.

Meanwhile, Upbit remains the market leader with more than 60% of trading volume, though that figure is down from 75% just a year ago.

IPO Restructuring

Bithumb’s rise in market share comes just months before its long-anticipated IPO, which is now targeting a late 2025 debut.

The exchange plans to list first on South Korea’s Kosdaq and potentially follow up with a listing on NASDAQ. This strategy is designed to attract both domestic and international investors.

Samsung Securities has been tapped as the underwriter for the offering. According to local reports, Bithumb is also restructuring its corporate framework ahead of the listing.

Effective July 31, 2025, the company will split into two distinct entities:

• Bithumb Korea will focus solely on the exchange business and pursue the Kosdaq listing.
• Bithumb A will consolidate Bithumb’s broader ventures, including asset management, private investments, and subsidiaries like Bithumb Partners and Bithumb Investment.

Following the split, Bithumb Korea will hold a 56% stake in the original exchange, while Bithumb A retains the remaining 44%.

A Two-Horse Race in a Tough Market

South Korea’s crypto market is one of the most tightly regulated in the world.

Strict licensing requirements, close ties to the banking sector, and a heavy compliance burden have pushed many smaller platforms out of the market entirely.

That leaves just two major domestic players—Upbit and Bithumb—dominating local trading activity.

With foreign exchanges largely shut out, the country’s crypto infrastructure remains domestically focused. But the political climate is shifting.

Several candidates in the upcoming South Korean presidential election have voiced pro-crypto positions, including promises to lift the ban on Bitcoin ETFs and allow greater foreign participation in local crypto markets.

Still, such promises aren’t new. South Korean politicians have often touted pro-crypto agendas during election campaigns, only to soften their stance once in office.

Whether that will change this time around remains to be seen, especially with global pressure mounting to open up digital asset markets.