Asian Exchanges Navigate a New Era of Crypto Regulation
Cryptocurrency exchanges across Asia are increasingly restructuring their businesses in response to tighter regulatory oversight, with Bithumb and Bitget taking two very different approaches to the changing landscape.
Summary
- Bithumb is preparing for an IPO after 2028 as it strengthens governance and internal controls.
- Bitget has begun withdrawing from Japan following increased regulatory pressure.
- The two exchanges are taking different approaches to a stricter regulatory environment.
- Compliance is increasingly shaping how crypto exchanges expand and compete.
South Korea’s Bithumb is laying the groundwork for a public listing after 2028 by overhauling its governance framework, while Bitget has chosen to withdraw from Japan rather than seek local authorization. Together, the developments highlight how regulatory expectations are becoming a strategic consideration for exchanges seeking long-term growth.
Bithumb Lays the Groundwork for a Future IPO
Bithumb said it is targeting an initial public offering after 2028, with management planning to complete governance, accounting and compliance reforms through 2027 before pursuing a listing.
To support that effort, the exchange has signed an IPO advisory agreement with Samjong KPMG, which will assist with improving financial reporting, internal audits, corporate governance and risk management.
The preparations follow a challenging period for the exchange. In February, Bithumb mistakenly credited users with 620,000 BTC instead of 620,000 Korean won during a compensation process, briefly triggering a sharp Bitcoin price dislocation on the platform and prompting scrutiny from South Korea’s Financial Supervisory Service (FSS). The incident added to broader regulatory challenges, including previous anti-money laundering enforcement actions.
Shareholders also re-elected Chief Executive Lee Jae-won for another two-year term, giving current management responsibility for completing the restructuring and leading the company toward a future public listing.
Bitget Begins Its Exit From Japan
While Bithumb is investing in governance to meet future listing standards, Bitget is reducing its presence in one of Asia’s most tightly regulated crypto markets.
The exchange has stopped accepting new registrations from Japanese residents and will begin implementing phased restrictions later this year after continued pressure from Japan’s Financial Services Agency (FSA).
Key dates for users include:
- August 3, 2026: New registrations for Japanese residents ended.
- November 1, 2026: Functional restrictions begin on affected accounts.
- Accounts without Level 2 identity verification will automatically be treated as Japan-based accounts.
- After December 31, 2026: Remaining positions on affected accounts will be closed if users have not exited voluntarily.
Japanese users have been advised to withdraw assets and close positions before the year-end deadline to avoid forced position closures.
Different Strategies, Same Regulatory Reality
The contrast illustrates the increasingly limited choices facing global exchanges. Companies seeking access to public capital markets must demonstrate stronger governance and financial controls, while firms operating internationally face growing pressure to obtain local licenses or withdraw from jurisdictions with stricter regulatory requirements.
Compliance Is Becoming a Competitive Moat
The announcements suggest regulatory compliance is increasingly influencing competitive positioning rather than simply determining whether an exchange can continue operating.
For Bithumb, stronger governance is becoming a prerequisite for accessing public capital markets and attracting institutional investors. Exchanges pursuing listings are facing higher expectations around financial reporting, internal controls and operational resilience.
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Bitget’s withdrawal illustrates the opposite side of the equation. Rather than investing in one of the world’s most demanding licensing regimes, the exchange chose to exit the market, highlighting how compliance costs can reshape international expansion strategies.
As regulatory requirements continue to diverge across jurisdictions, exchanges are increasingly weighing the commercial value of each market against the cost of obtaining and maintaining local authorization.
Regulation Is Reshaping Competition in Asia
The developments also illustrate how Asia is becoming one of the most influential regions for crypto regulation.
South Korea is placing greater emphasis on governance standards, operational controls and investor protection following several high-profile exchange incidents. Japan, meanwhile, continues to enforce one of the world’s strictest licensing frameworks, limiting market access to firms willing to operate under domestic supervision.
That divergence is changing how exchanges allocate capital. Companies seeking long-term access to regulated markets are investing more heavily in compliance infrastructure, while others are concentrating resources in jurisdictions with lower regulatory barriers.
For users, the result is likely to be a market with fewer operators but stronger oversight, particularly as institutional participation continues to expand.
The Next Phase May Be Defined by Regulation, Not Products
For much of the past decade, crypto exchanges competed primarily on trading fees, leverage and the speed of launching new products.
That competitive landscape is shifting.
As regulators tighten oversight across major financial centers, governance standards, licensing approvals and operational controls are becoming strategic assets alongside liquidity and market share.
The contrasting approaches taken by Bithumb and Bitget demonstrate that exchanges no longer compete solely through innovation. Increasingly, they are competing on their ability to satisfy regulators, attract institutional capital and operate across multiple jurisdictions.
For the broader market, that could accelerate industry consolidation as compliance costs rise, making it harder for smaller exchanges to expand internationally while reinforcing the position of platforms able to invest in regulatory infrastructure.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
