South Korea’s largest crypto exchange, Bithumb, has announced the launch of its own virtual currency “Bithumb Coin” in Singapore.
Bithumb decided to launch its own virtual currency away from home because of the bans imposed on ICOs by the South Korean government. The South Korean government placed a ban on ICOs after fraudsters invaded the cryptocurrency space. Although South Korea’s Financial Services Commission (FSC) issued the ban, plans are underway for local financial authorities to legalize ICOs. The local financial authorities are putting in place strict measures and use of anti-money laundering systems. These measures and systems are to help them manage the cryptocurrency space.
Exchange Platforms Setting Up Shop In a Foreign Countries
Although local financial institutions are on track to legalize ICOs in South Korea, some of the exchange platforms have decided to launch their ICOs outside South Korea. Apart from Bithumb, Coinone has set in motion plans to launch their token in June in Indonesia. On the other hand, Huobi crypto exchange, based in China, launched its own coin Huobi Token (HT) in January. Other platforms that have also launched their tokens include Kucoin and Binance. It seems the ban on cryptos in South Korea is pushing away the platforms from South Korea.
Bans placed by different governments seem to be pushing away the exchange platforms to launch their tokens in other countries. It also means these exchange platforms might set up shop in the countries they are launching their tokens. For instance, Bithumb also announced it will establish a unit in Singapore. The unit will be responsible for managing all operations concerning the issuance of the ICO. It might also lead to the exchange platform moving away from South Korea.
It’s reported that Bithumb will be targeting large-scale investors such as institutional investors rather than individual investors. According to the publication, Bithumb did not disclose the reasons as to why they are targeting large-scale investors. Unlike in other ICOs where the size of the venture and date of launching the token are announced, Bithumb didn’t release such details. A successful launch of Bithumb Coins will grant Bithumb exchange platform a major comeback from their 2017 hack.