Bithumb Global, South Korea based cryptocurrency exchange, is looking to build a legislated exchange for cryptocurrencies in India.
The firm will reportedly talk terms with Indian regulators to initiate the operations for the exchange. The firm is anticipated to be on the lookout for expansion opportunities and hence will likely partner with local cryptocurrency exchanges. It will also fund the Indian cryptocurrency businesses, and introduce fresh initiatives in the Indian trade, says the co-founder and managing director, Javier Sim of the firm.
He said,
We are open to talking to regulators, working with them to be a regulated exchange. We are a strong brand from Korea and do not involve ourselves in unregulated or illegal trade.
There was a recent imbroglio in the Supreme Court as the bitcoin operators raised concerns regarding the decision of the Reserve Bank of India to prohibit banking associations from carrying their cryptocurrency transactions. The legislative panel has even recommended a prohibition over the cryptocurrency business in India.
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Sim, in his defense, said that the exchange would let Indian retail merchants relish better liquidity and lower costs of the transaction when compared to its counterparts.
Javier Sim plans to collaborate with the local cryptocurrency firms that administer a peer-to-peer model of the transaction to let users be more inclined to trading cryptocurrencies on its platform. The peer-to-peer model operates technology networks to stimulate customers as well as vendors of cryptocurrencies to involve in trading sessions in the absence of banking alleys.
After RBI imposed a ban on crypto trade, there was a snatched tumble in the volume of the trade across different cryptocurrency exchanges in India, which lead to the dissolving of a number of firms.
In the year 2018, loss worth $180 million was bred by Bithumb. The event was reported to have occurred due to hacks and worsened by the sluggish market for cryptocurrencies in their homeland, South Korea. With a spotlight over the combating means for future threats, Sim spoke that,
we have learned from those incidents and are using industry-leading wallet systems. We as a leading, global exchange assign top priority to users’ assets.
We are just looking to get into agreement with some stable firms that have good market competency and invest in them, said the leader opening up about his perspective plans of investment across the blockchain projects in India. He said,
We were looking for the right companies to partner with and invest in those that know the Indian market.
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The firm has plans to aid blockchain projects in India that have new blockchain-oriented services or the cryptocurrencies. It is going to follow a “staging” procedure that functions like an Initial Public Offering through traditional exchanges.
The merchants can fix their prevailing crypto tokens in Global Bithumb vaults to show interest in modern projects. After a trader gets a share in the initiative, the token is employed as a fee or, it is sent back to the user’s account.
