Bithumb Begins Middle East Expansion With UAE Crypto Exchange

Article by · February 12, 2019 ·

Bithumb, a South Korean-based cryptocurrency exchange is launching a licensed fiat-to-crypto exchange in the United Arab Emirates (UAE).

An announcement made by the firm on Tuesday reveals that a memorandum of understanding (MoU) has been signed with the UAE-based company Nvelop to create a joint venture for the program, according to a report from Korea.

Abu Dhabi-based E11 Investment Fund and Asia-based venture capital company Trill Ventures Group founded the Nvelop in order to support blockchain businesses in the Middle East and North Africa (MENA) region.

Bithumb noted that the company is also intending to expand in MENA countries, including states like Saudi Arabia and Bahrain with the new partnership signed.

Earlier in June, a regulatory framework under which crypto exchanges must be registered and approved by the FSRA as crypto-asset businesses was issued by Abu Dhabi’s markets regulator, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market. The types of crypto assets that can be used by firms is also limited by the framework.

Earlier today, Bithumb announced that the FSRA intended to provide crypto licenses under the program from the first half of this year. If given approval, it is an indication that its UAE-based exchange could be opened around mid-2019.

A global over-the-counter (OTC) trading desk was launched just last week by Bithumb for digital assets via its Hong Kong-based institute, Bithumb Global.

Through a reverse merger deal, Bithumb is also planning to go public in the U.S. A binding letter-of-intent agreement was signed by the firm in January with Blockchain Industries, an investment firm which is based on the crypto and blockchain industry and makes transactions based on the U.S OTC markets.

As soon as the deal is complete, the joint body would be referred to as the Blockchain Exchange Alliance (BXA), and there is the possibility that it could become the first U.S.-listed crypto exchange. According to the firm, the deal is aimed to come to an end by March 1.

In June 2018, Bithumb was clearly robbed-off of about $30 million, however, according to the exchange, almost half of the amount was clawed back immediately with help from other exchanges. User registrations were relaunched last August by the firm after rebuilding its security system for some months.

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