South Korean Bithumb wants to have a second IPO

Bithumb, one of the largest cryptocurrency exchanges in South Korea, seems to be making plans to hold another IPO (Initial Public Offering). If Bithumb goes through with its plans, it will be its second attempt to hold an IPO.

Bithumb is ready for a second attempt at IPO

The company originally attempted its first IPO in early 2019. Back then, it signed a binding letter of intent with another firm, known as Blockchain Industries.

Blockchain industries trades publicly in the OTC markets in the US, so the companies attempted to secure Bithumb’s IPO through a reverse merger. The method was certainly unconventional, and it did not achieve satisfying results, so the exchange is preparing to try again.

According to a report published earlier today, the exchange will not have an easy time organizing an IPO. It will have multiple challenges to overcome, including investment protection and taxation issues.

But, the exchange seems optimistic, and it selected Samsung Securities as a host. Right now, it is dedicated to development work that it requires in order to hold an IPO.

Bithumb has numerous obstacles before it can qualify

The move appears to be viewed in a positive light, with many officials seeing it as a major step towards mass adoption, both for crypto and the exchange. However, some problems might be larger than others, and taxation is a particularly complex issue in the country.

Recently, the country’s Finance Minister, Hong Nam-ki, suggested that South Korea should tax digital asset profits. However, more about this will be known over the course of the following month.

For now, that means that the country’s stance towards taxes remains unclear, which makes things difficult for the exchange, as well as the rest of its crypto industry. In fact, the lack of clarity might mean that Bithumb will not be qualified to hold an IPO just yet, despite preparations. There are also other complications, such as valuation problems and internal issues.