Bithumb to launch crypto exchange in UAE, seeks MENA expansion
Bithumb, the South Korean crypto exchange, has joined hands with a UAE-based Nvelop to begin a new fiat to crypto exchange in UAE. The exchange, on Tuesday, announced that it signed a MoU [Memorandum of Understanding] with Nvelop to form a joint venture for the setting up the exchange.
Bithumb plans to expand its operations to the Middle East and North Africa [MENA] nations after the launch of the new exchange in UAE, according to a report. Nvelop is a joint venture between Abu Dhabi-based E11 Investment Fund and Asia-based venture capital firm Trill Ventures Group. The firm seeks to fund blockchain businesses in the MENA regions.
“The partnership with Nvelop will enable us to build a foothold in the Middle East as a global exchange,” said Bithumb according to a report. “This year, we will diversify into a company centered on overseas business,” the company added.
To begin a new exchange Bithumb should apply for a license with the FSRA [Financial Services Regulatory Authority], the Abu Dhabi markets regulator. The FSRA issued new regulatory guidance under which crypto exchanges are supposed to be licensed and approved as crypto asset businesses. If Bithumb gets approval under this scheme it could launch around mid-2019.
Bithumb is currently the largest crypto exchange by trading volume. The exchange giant is also seeking to go public in the U.S through a reverse merger with a U.S blockchain company. The exchange is planning to acquire the U.S. publicly traded company called the Blockchain Industries. Blockchain Industries which publicly trades in the U.S. over the counter markets announced that it had signed a letter of intent with the holding company of the Korean crypto exchange.
After the merger, Bithumb would be the first ever crypto exchange to be publicly listed.
The exchange giant is expanding as well as adding new services to its portfolio. The firm recently launched its over the counter trading desk, Ortus. The platform offers “matchmaking service catering to institutional clients” and also seeks to execute block deals.
Image via Shutterstock