Days after reports surfaced of potential internal issues leading to the delay of its planned IPO, Bithumb Korea, the operator of the South Korean cryptocurrency exchange Bithumb, revealed a 57% annual revenue loss for the fiscal year of 2023.

According to an April 2 report from Korean news outlet Newdaily, the Seoul-based exchange's annual sales revenue plummeted by 57.6% to 1.358 billion Korean won in 2023, down from 3.201 billion won in 2022. Net profit also experienced a sharp decline of 74.5%, dropping to 243 billion won in 2023 from 954 billion won the previous year, although it remained in surplus for the fourth consecutive year.

Bithumb attributed the financial losses primarily to the depreciation of cryptocurrencies amid the crypto winter. Additionally, the exchange's decision to implement a fee-free trading policy during the fourth quarter of the previous year contributed to the decline in revenue.

Despite challenging market conditions, Bithumb focused on expanding its presence throughout South Korea in 2023. Moving forward, the exchange intends to concentrate on enhancing its services to drive performance improvements, as conveyed by a Bithumb spokesperson to Newdaily.

The announcement of the financial loss coincided with Crypto.com's unveiling of plans to launch a cryptocurrency trading app for South Korean retail investors on April 29, potentially posing a threat to Bithumb's market share in the country.

Regarding its IPO plans, Bithumb aimed to become the first digital asset company to go public on the South Korean stock market, with initial reports emerging in November 2023. However, amid scrutiny over former chairman Lee Jeong-hoon's role in the company, Bithumb reevaluated its IPO ambitions, suggesting internal challenges within the organization, as reported by Decenter on March 29.

While Bithumb officials denied that legal issues related to chairman Lee's role were the cause of the IPO delay, they acknowledged a reassessment of internal strategy amidst evolving regulatory landscapes. This development follows the proposal by South Korea's Financial Services Commission (FSC) of a new amendment that would require regulatory approval for new executives of crypto firms, potentially impacting Bithumb's future operations.