One of many oldest cryptocurrency exchanges in Scandinavia needs to go public later this 12 months, hoping it’ll allow conventional traders to take part in “new finance.”
Oskar Soderstrom, CEO of Stockholm-based BTCX, confirmed to CoinDesk it’s seeking to ship an preliminary public providing (IPO) earlier than the top of Q3 2020. Company monetary advisory agency Eminova Companions has been engaged to assist file the providing, anticipated to happen in Sweden.
“Our goal is to carry bitcoin to the lots and to bridge the hole between new and conventional finance,” Soderstrom wrote in an e-mail. “Being in new finance, a list of the corporate through a conventional route looks like a pure development to realize that purpose.”
Launching in 2012, BTCX helps buying and selling in bitcoin and ethereum, with the Swedish krona and the euro as fiat funding choices. It additionally options an “specific” change facility, enabling transfers between digital and fiat currencies that full in a matter of minutes. Customers have to finish KYC/AML checks earlier than they will use the agency’s providers.
Following the collapse of the ICO market in 2018, cryptocurrency firms have more and more turned to extra conventional means to boost funds. IPOs, that are closely regulated and usually accessible to most types of traders, enable firms to broaden their enchantment and improve their fame amongst extra skeptical components of the monetary world.
“Selecting a conventional route may add extra transparency to an business historically shaded in the eyes of the general public,” Soderstrom stated. With blockchain-based options nonetheless in a section of “immaturity,” he added, a public providing would additionally fulfill any considerations raised by Sweden’s chief monetary regulator, the Finansinspektionen (FI).
There are some disadvantages to taking the IPO route, nonetheless. Traders can nonetheless lose cash, as when the share value for cryptocurrency mining rig maker Canaan dropped 40 % weeks after an IPO raised $90 million. Equally, Chinese language mining large Bitmain needed to step again from plans for an IPO in Hong Kong after earnings dropped precipitously in the latter a part of 2018.
Regardless of this, Soderstrom is assured that if managed appropriately the BTCX IPO will probably be successful. “We consider the standard monetary markets will probably be very in Sweden’s older crypto dealer being listed,” he stated.
UPDATE (Jan. 17, 17:48 UTC): A earlier model of this text stated BTCX had been established in 2013. This has since been corrected.
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