Seoul crypto exchange Bithumb gets mainstream backing
October 15 2018 - 9:35AM
InvestorsHub NewsWire
l South Korea's major exchanges are now
operated by conglomerates
Late last week it was announced that a majority stake in South
Korea’s largest crypto exchange has been sold to a consortium led
by a plastic surgeon.
According to a Reuters report, 50 percent plus
one share of Bithumb has been sold to Singapore-based BK Global
Consortium for approximately $354 million. The exchange is one of
Korea’s largest with a daily trade volume of over a billion dollars
according to analytics website coinmarketcap.com. However, due to
discrepancies in reporting it has been difficult to gauge true
trade volume figures from crypto exchanges.
The consortium is led by Kim Byung-gun, plastic surgeon and
blockchain platform investor. It has now become the largest
stakeholder in the Korean crypto exchange. A consortium
representative told media: “Kim Byung-gun demonstrated his
multinational management ability in the field of medical care,
fintech, and blockchain in Singapore. He is the right person to
pursue the systemization and globalization of the virtual currency
exchange.” Additionally, Kim has already announced plans to open
‘Bithumb Dex’, a decentralized exchange, through his Hong Kong
subsidiary this month.
Bithumb, despite a number of security breaches and high profile hacks, has secured
its position as one of South Korea’s leading crypto-currency
exchanges, along with Upbit. Local crypto media have said South
Korean investors are upbeat about the acquisition of Bithumb
because it means that all of South Korea’s major exchanges are now
operated by large-scale conglomerates.
This provides an extra layer of liquidity and security in what
currently are very shaky market conditions. Upbit is run by Kakao,
Korea’s largest internet conglomerate; the country’s largest
commercial bank, Shinhan, runs Gopax; and Korbit is operated by
Nexon, an international South Korean video game company.
One advantage that Korbit, Upbit, and Gopax exchanges hold over
Bithumb is that they have never been hacked due to a focus on
security and investor protection. South Korean conglomerates must
strive to protect their brand and name to maintain consumer and
investor loyalty. With BK getting into Bithumb the focus can now
turn to security, legitimization, and internal system management,
which is good news for investors.
Due to its ties with Singapore, BK is likely to be
eyeing that market on the heels of Binance and Upbit which have
already announced plans for expansion to the island nation. Stable
banking services and a blockchain- and crypto-friendly environment
makes Singapore a likely venue for Bithumb’s international
expansion.
By Luke Thompson
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