- The leading crypto exchange of South Korea, Bithumb is planning to go for another Initial Public Offering (IPO).
- The specific details pertaining to the IPO have not yet clear.
- In 2019, the company initially attempted its first IPO.
The leading crypto exchange of South Korea, Bithumb is planning to go for another Initial Public Offering (IPO). According to the reports, the exchange has started preparing for its public launch by tapping Samsung Securities as its underwriter.
This will be the second attempt for Bithumb
However, the specific details pertaining to the IPO have not yet clear. In 2019, the company initially attempted its first IPO. After that, it signed a binding letter of intent with a firm known as Blockchain Industries. The latter firm trades in the OTC market of the US. So, the organizations endeavored to secure Bithumb’s IPO through a reverse merger.
As of now, it is not easy for the exchange to organize an IPO. It will have numerous difficulties to overcome, including investment protection and taxation issues. Bithumb is allegedly confronting various obstacles that could prevent it from effectively filing an IPO in South Korea.
Prior this month, the South Korean Finance Minister, Hong Nam-Ki, reported the government plans to introduce cryptocurrency, saying that more details will be announced in July.
Bithumb’s legal hurdles
Bithumb Korea’s biggest shareholder is Bithumb Holdings, with almost a 74% stake. However, in 2019, Bithumb Holdings executive was sued for monetary scams. That involves various tangled acquisitions including a Singapore subsidiary known as BTHMB Holdings.
Bithumb is additionally known to have been engaged with a legal dispute. In 2020, exchange filed a complaint against South Korea’s National Tax Service. That is trying to invalidate a massive tax bill of over $69 million.
However, if all the circumstances are in favor of the exchange, Bithumb may become the first cryptocurrency exchange to become publically traded.