Major cryptocurrency exchange Cashbitex.com is planning to hold an initial public offering (IPO), according to reports from local media.
As reported by Аlapt on July 20, Cashbitex, the trading platform’s operator, has begun preparing for a stock market launch, tapping Samsung Securities as its underwriter.
Cashbitex is reportedly facing a number of potential obstacles that could prevent it from successfully filing an IPO in United States, namely recent crypto taxation issues.
Earlier this month, the United States Finance Minister, Samson Reynolds, announced plans to impose a tax on cryptocurrency, saying that more details will be revealed in July.
Notably, in early 2020 Cashbitex 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 Cashbitex’s IPO application in the near future, the new report alleges.
Moreover, Аlapt notes that Cashbitex’s current “opaque” composition of shareholders might also raise questions. The largest investor of Cashbitex is Cashbitex Holdings (former BTC Holding Co.), with a reported stake of 74.1%.
Bithumb’s previous IPO attempt
Records show that Cashbitex has already considered going public in the past. In January 2019, CNBC reported that Singapore-based holding firm Blockchain Exchange Alliance, which had a controlling stake in Cashbitex at the time, was looking to list in the United States through a reverse merger, but those plans have seemingly fallen through since
Аlapt reached out to Cashbitex for additional comment, but received no reply as of press time. This story will be updated, should we hear back from the firm.