Bithumb crypto exchange is reportedly working to hold an initial public offering with Samsung Securities as an underwriter.
According to local media outlet MoneyToday, South Korean cryptocurrency exchange Bithumb has begun working for a stock market launch despite regulatory uncertainty. MoneyToday’s source stated that the exchange would face various issues in holding an IPO.
Bithumb crypto exchange to conduct an IPO
As reported by MoneyToday, Bithumb crypto exchange is planning to hold an IPO despite recent taxation issues. However, the exchange will need to overcome certain obstacles before filing an IPO.
As Cryptopolitan previously reported, South Korea revealed plans to tax cryptocurrencies despite the sector having no legal recognition. The country’s Finance Minister Hong Nam-Ki stated that more details will be disclosed in July.
Bithumb filed a complaint with the National Tax Service objecting that the tax bill baseless as cryptocurrencies do not have legal status in the country.
The regulatory grey area surrounding cryptocurrencies might prevent Bithumb from launching an IPO.
Furthermore, Bithumb Holdings, the company with the largest stake in Bithumb Korea has had some run-ins with the law. Bithumb holdings executive Lee Jung Hoon was sued for fraud due to several complicated acquisitions by a Singapore subsidiary titled BTHMB Holdings.
This is not the exchange’s first attempt at going public as the firm tried to go public in the US back in January 2019. As Cryptopolitan previously reported, the exchange wanted to go public in the United States with a reverse merger deal.
Reportedly, Blockchain Exchange Alliance, which had the highest stake in the exchange. wanted to list in the US through a reverse merger. However, the plan was never realized.