Leading cryptocurrency exchange Bithumb is getting ready to hold an IPO [Initial Public Offering], consistent with reports from the native media.
In line with a recent report by MoneyToday on 24th June, Bithumb Korea, the trading platform’s operator, has begun preparing for a stock exchange launch, tapping Samsung Securities as its underwriter.
Bithumb is reportedly facing several of potential obstacles that would prevent it from successfully filing an IPO within South Korea, namely the recent cryptocurrency taxation issues.
Also earlier this month, the South Korean Minister of Finance, namely, Hong Nam-Ki, revealed the plans to impose a tax on cryptos, adding that more details are going to be revealed later in July.
Moreover, in early 2020 Bithumb filed a complaint with the National Tax Service, adding that the imposed $69 Mln bills are baseless, as long as cryptocurrencies aren’t legally recognized within the country.
The present regulatory uncertainty surrounding digital assets might prevent the native regulators from green lighting Bithumb’s IPO application within the mere future, the new report alleges.
At the same time, MoneyToday outlined that Bithumb’s present “opaque” composition of shareholders may additionally raise questions. However, the most important investor of Bithumb Korea is Bithumb Holdings (former BTC Holding Co.), with a reported stake of 74.1%. Consistent with the native reports from December last year in 2019, Bithumb Holdings executive Lee Jung Hoon was sued for economic fraud as a results of several entangled acquisitions involving a Singapore subsidiary called BTHMB Holdings.
Bithumb’s Earlier Attempts Of Going Public
Records reveal that Bithumb has already considered going public within the past. Also earlier in January last year, CNBC revealed that Singapore-based holding firm Blockchain Exchange Alliance, that had a managing stake in Bithumb at the time, was looking to list within the U.S. via a reverse merger, but those plans have seemingly fallen through since.