South Korea’s cryptocurrency exchange, Bithumb, is planting its flag in the Middle East with the launch of an authorized exchange of fiat to cryptography in the United Arab Emirates (UAE).
Bithumb has announced that it has joined Nvelop based in the United Arab Emirates with the aim of forming a joint venture for the initiative. The Exchange announced today that it has signed a Memorandum of Understanding (MoU) with Nvelop to form a joint venture.
Bithumb plans to expand its operations to Middle East and North African nations after the launch of the new Exchange in the United Arab Emirates, according to a report.
Nvelop was founded by the E11 Investment Fund based in Abu Dhabi and the Asian-based venture capital firm Trill Ventures Group to finance Blockchain business in the Middle East and North Africa (MENA) region.
“The partnership with Nvelop will allow us to build a foothold in the Middle East as a global exchange,” Bithumb said in a report. “This year, we will diversify into a company focused on business abroad,” the company added.
In June, the market regulator of Abu Dhabi, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market issued a regulatory framework whereby encryption exchanges must be authorized and approved by the FSRA as encryption asset companies. The framework also limits the types of cryptographic assets that companies can use.
In this way, to start a new exchange, Bithumb must apply for a license with the FSRA, the market regulator of Abu Dhabi. If Bithumb obtains approval under this scheme, it could be launched by mid-2019.
The FSRA plans to issue cryptographic licenses under the scheme beginning in the first half of this year, Bithumb said in today’s announcement.
Bithumb is currently the largest Exchange of cryptography by volume of operations. The giant is also trying to go public in the United States through an inverse merger with a US Blockchain company. The Exchange plans to acquire the publicly traded company in the United States, called Blockchain Industries. Blockchain Industries, which is publicly traded in the United States through the over-the-counter markets, announced that it had signed a letter of intent with the Korean cryptography exchange holding company.
Once the agreement is completed, the combined entity will be known as the Blockchain Exchange Alliance (BXA), and could potentially become the first cryptography exchange included in the United States. The signatures aim to complete the agreement before March 1.
Clearly the Exchange is highly interested in expanding. Last week, Bithumb launched a global over the counter (OTC) trading desk for digital assets through its Hong Kong-based entity, Bithumb Global.
Finally, it is relevant to remember that Bithumb was hacked remarkably for around $ 30 million in June 2018, but claimed to have recovered almost half of that amount soon after with the assistance of other exchanges. After several months of rebuilding their security systems, the firm relaunched user records last August.