March 31, 2020 – Technology firm and publicly-listed company Xurpas sold 80% of CTX Technologies Inc, its virtual currency subsidiary, to its founder Fernando Jude Garcia.
In a disclosure to the Philippine Stock Exchange (PSE), the company’s board of directors approved selling 80% of CTX to Mr. Garcia. Xurpas also said it does not have income or revenue the subsidiary.
CTX Technologies Inc. was incorporated in 2018 and was supposed to become Xurpas’ virtual currency exchange arm. As per the Bangko Sentral ng Pilipinas (BSP), a virtual currency is a type of currency that is stored on e-wallets and generally transacted online. It is not guaranteed by any government. As per this definition, cryptocurrency is a form of virtual currency. The BSP is accepting applicants for virtual currency exchange (VCE) which will allow a company to legally engage in the business of converting crypto to fiat and vice versa.
The Xurpas disclosure further said that in 2019, the company decided not to pursue its VCE license application with the BSP. CTX remained a non-operating entity, incurring operational expenses particularly when they were working on the VCE application. Xurpas noted that the current book value/total equity of CTX is approximately Php 1 million.
Because Xurpas sold 80% of the subsidiary to Mr. Garcia, it will be able to consolidate 20% of CTX income in the future, if any.
As per Businessworld, the company said:
“With the decline of the virtual currency market in 2019 and the unclear regulations involving digital assets, Xurpas’ management has previously decided to place CTX’s business on hold.”
This article is published on BitPinas: Xurpas Puts Virtual Currency Subsidiary on Hold