South Korea's three largest cryptocurrency exchanges are aggressively expanding their operations overseas. This strategic move highlights the global ambitions of these platforms as they seek to capture new markets and diversify their service offerings beyond the domestic landscape. The international push involves establishing new trading platforms, forming key partnerships, and securing regulatory approvals in various jurisdictions.
Bithumb's Strategic Entry into the US Security Token Market
On October 31, Bithumb announced a significant partnership with the US-based financial technology firm Seriesone. This collaboration is designed to facilitate Bithumb's entry into the American market, specifically focusing on security tokens.
According to the agreement, "Bithumb is investing in the Korean entity of Seriesone to scale up technological development and marketing efforts." This investment underscores the long-term commitment both companies have toward this venture.
Seriesone further elaborated:
Bithumb and Seriesone will establish a joint venture to create a new exchange in the United States. This platform will enable the trading of security tokens and will be fully approved by the SEC, FINRA, and other relevant regulatory bodies.
This initiative represents a major step forward in bringing compliant digital asset trading to a broader audience. For those interested in the technical and regulatory aspects of such platforms, 👉 explore more about security token trading.
Bithumb was recently acquired by the Singapore-based BK Global Consortium. Previously, the largest shareholder was BTC Korea Holdings, which held a 75.99% stake. The BK Global Consortium purchased a controlling interest of 50% plus one share from BTC Korea Holdings, making it the new majority owner.
In a related development, Seriesone appointed Kaine Kim, the former Vice Chairman of South Korea's Financial Services Commission, as the Managing Director for its Korean operations and Head of its Asian business.
Upbit Launches Its Exchange Platform in Singapore
On October 30, Upbit officially announced the launch of its new cryptocurrency exchange in Singapore. The new platform is led by Alex Kim, who previously served as the head of Kakao Indonesia.
Upbit, operated by Dunamu Inc., is a known partner of the global exchange Bittrex. Lee Sir-goo, the CEO of Dunamu, stated in September that while pursuing global market expansion, Upbit would continue to strengthen its collaboration with Bittrex. He pointed out:
The newly established Singapore exchange will initially support only one fiat currency, the Singapore Dollar (SGD). Plans are in place to add other fiat currencies in the future and to expand into other Southeast Asian countries.
Currently, the Upbit Singapore exchange supports trading between SGD, BTC, ETH, and USDT. The exchange has also confirmed that any user who completes the identity verification process can start trading on the platform.
Coinone Establishes CGEX in Malta
On October 29, Coinone revealed the establishment of a new exchange named CGEX in Malta. This platform will offer crypto-to-crypto trading, featuring the same trading pairs available on Coinone's BTC market.
The exchange began accepting deposits and withdrawals on October 29, with trading going live on October 30.
A representative from Coinone stated:
The new crypto exchange will share its order book with Coinone's BTC market. By integrating with Coinone services in Korea, Indonesia, and other branded offerings, CGEX aims to provide investors with stable and robust liquidity.
This integration is a strategic effort to leverage existing infrastructure and user bases to ensure the new platform's success from the outset. For a deeper look into how such integrations enhance trading experiences, 👉 discover advanced trading strategies.
Frequently Asked Questions
Why are South Korean crypto exchanges expanding overseas?
These exchanges are seeking growth opportunities in new markets, diversifying their user base, and navigating the complex regulatory environment in South Korea by establishing presence in more crypto-friendly jurisdictions.
What is a security token exchange?
A security token exchange is a regulated platform that facilitates the trading of digital tokens which represent ownership in real-world assets, like equity or debt, and are subject to federal securities regulations.
How does sharing an order book between exchanges work?
When exchanges share an order book, they combine their buy and sell orders into a single, shared ledger. This creates a larger, more liquid market, often resulting in better prices and faster execution for traders on both platforms.
What are the benefits of using a Singapore-based crypto exchange?
Singapore offers a clear regulatory framework for digital assets, a strong financial infrastructure, and serves as a gateway to the rapidly growing Southeast Asian market, making it an attractive hub for crypto businesses.
Which fiat currencies does Upbit Singapore support?
At launch, Upbit Singapore supports only the Singapore Dollar (SGD). The exchange has plans to add support for additional fiat currencies as part of its future expansion strategy.
What is the significance of regulatory approval for these new exchanges?
Obtaining approvals from bodies like the SEC and FINRA is crucial for operating legally in strict jurisdictions like the US. It builds trust with users by ensuring the platform complies with important investor protection and anti-fraud regulations.