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On March 31, the market headquarters of KOSDAQ in South Korea announced today that due to the receipt of Vidente, the largest shareholder of Bithumb, the country\’s crypto exchange,

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On March 31, the market headquarters of KOSDAQ in South Korea announced today that due to the receipt of Vidente, the largest shareholder of Bithumb, the country’s crypto exchange, stating that it had rejected the audit opinion on the consolidated financial statements of the latest business year, there was a cause for delisting and it was facing delisting risks. The trading of Vidente shares will be suspended until the expiration of the delisting objection period or the date on which the objection decides to delist.

Vidente, the largest shareholder of Bithumb, faces delisting risk

| Heading |
|———|
| Introduction |
| Who is Vidente? |
| Overview of KOSDAQ |
| Cause of Delisting |
| Impact on Bithumb and Crypto Market |
| Future Prospects |
| Conclusion |
# On March 31, the market headquarters of KOSDAQ in South Korea announced today that due to the receipt of Vidente, the largest shareholder of Bithumb, the country’s crypto exchange, stating that it had rejected the audit opinion on the consolidated financial statements of the latest business year, there was a cause for delisting and it was facing delisting risks. The trading of Vidente shares will be suspended until the expiration of the delisting objection period or the date on which the objection decides to delist.

Introduction

On March 31, 2021, the Korean Securities Dealers Automated Quotations (KOSDAQ) declared cryptic delisting warnings for trading firm Vidente Co., an organization that holds a significant stake in Bithumb, South Korea’s biggest cryptocurrency exchange. Reports have condemned Vidente for not submitting appropriate consolidated financial reports for the fiscal year 2020. This article aims to provide a detailed understanding of the implications of Vidente’s delisting and its repercussions on Bithumb and the wider crypto market.

Who is Vidente?

Vidente is a noted South Korean holdings company that invests in various businesses, including blockchain, fintech, artificial intelligence, and big data. The company recently turned its attention to crypto and purchased a 34.24% stake in Bithumb, one of South Korea’s significant cryptocurrency exchanges. Vidente also operates first-rate mobile media services via the companies SKYMOBILE and SKY E&M.

Overview of KOSDAQ

The KOSDAQ is a stock exchange in South Korea that is under the direct control of the Korea Exchange (KRX). KOSDAQ was developed in 1996 to provide its investors with an environment that allows trading for enterprises of all sizes, ranging from startups to small giants, etc. The exchange has a set of standards that publicly-listed firms have to meet to retain their display on the exchange.

Cause of Delisting

Vidente’s warning of being delisted on the KOSDAQ resulted from its failure to submit consolidated financial statements for auditing purposes. The South Korean government has recently tightened regulations to promote transparency and prevent money laundering in the crypto market. Unfortunately, Vidente’s inappropriate document filing has caused them to violate consolidated financial statement requirements set by the Financial Services Commission (FSC).

Impact on Bithumb and Crypto Market

Vidente’s delisting puts Bithumb under potential threat for similar consequences after regulations. Bithumb and other crypto exchanges, since their origin, have often failed to comply with regulatory and security standards maintained by the government. The South Korean financial watchdog has been extensively vigilant on the crypto market’s regulations and has initiated several times to drive compliance procedures. However, many critics believe that crypto regulation is still in its early stages; rigid policies could lead to crypto firms being targeted and pulled down.

Future Prospects

Vidente’s delisting risks pose potential legal and financial implications, and it may preliminarily injure other business interests and holdings in the hospitality, restaurant, and golf course ventures. Subsequently, the development of other businesses held by Vidente may also be affected due to its struggle to meet regulatory and competitive conditions. Presently, it is unclear whether delisting will be successful, or whether the delisting will be delayed, or whether delisting will be avoided directly.

Conclusion

Vidente’s risk of being delisted from the KOSDAQ has brought its financial reflections. The South Korean government is continuously cracking down on crypto transactions following several fraud cases. With stricter regulations, now more than ever, crypto firms are under pressure to follow guidelines. The delisting risk could affect Bithumb and other crypto exchanges that are essential to the Korean crypto market. Hence, the KOSDAQ has warned crypto exchanges to regulate their financial statements appropriately.

FAQs

1. What is Vidente and Bithumb’s Relationship?
Ans: Vidente is a major shareholder in Bithumb, South Korea’s leading cryptocurrency exchange.
2. What is KOSDAQ?
Ans: KOSDAQ is the Korean Securities Dealers Automated Quotations, which is a stock exchange in South Korea.
3. What are the Risks of Delisting for Vidente?
Ans: Vidente may be legally and financially hampered due to its struggle in meeting regulatory requirements and competitive conditions.

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