The South Korean exchange is reportedly looking into a stock market launch despite local regulatory uncertainty.
Major South Korean cryptocurrency exchange Bithumb is planning to hold an initial public offering (IPO), according to reports from local media.
As reported by MoneyToday on June 24, Bithumb Korea, the trading platform’s operator, has begun preparing for a stock market launch, tapping Samsung Securities as its underwriter.
Bithumb is reportedly facing a number of potential obstacles that could prevent it from successfully filing an IPO in South Korea, namely recent crypto taxation issues.
Earlier this month, the South Korean Finance Minister, Hong Nam-Ki, announced plans to impose a tax on cryptocurrency, saying that more details will be revealed in July.
Notably, in early 2020 Bithumb filed a complaint with the National Tax Service, suggesting that the imposed $69 million tax bill is baseless, given that cryptocurrencies are not legally recognized in the country.
Current regulatory uncertainty surrounding digital assets might prevent local regulators from green lighting Bithumb’s IPO application in the near future, the new report alleges.
Moreover, MoneyToday notes that Bithumb’s current “opaque” composition of shareholders might also raise questions.
