Bithumb, one of the most prominent cryptocurrency exchange of South Korea, has recently divulged that it would launch Bithumb Coin, a new cryptocurrency, in an Initial Coin Offering (ICO). The company follows the path that other popular exchanges like Binane and KuCoin have already followed in the past.
The ICO will be held in Singapore, as ICOs are banned in South Korea and the company could be in legal trouble if it tried to do it there. Rather than focusing on small individual investors, the company is allegedly looking for large-scale investors, reports say.
At the moment there is not much information about the ICO like its date or the price of the new currency.
Bithumb Is Not the Only Exchange Launching a Cryptocurrency
Binance and KuCoin are not the only other examples that exist of exchanges launching tokens. In January, the Chinese exchange Huobi has announced its intentions to launch the Huobi Token. This company decided for another route, though.
Huobi Coins would not be sold in an ICO but only to active users of the cryptocurrency exchange. This way, outsiders could not be majority investors in the company and the tokens would end up with the community.
The South Korean Ban On ICOs & Bithumb Coin
An important fact that Bithumb had to take into account while launching the ICO was South Korea’s Financial Services Commission ban on ICOs during September 2017. The reasons cited by the agency were the high risk of scams that the ICOs promote.
Even with the government revealing plans to let local authorities authorize ICOs via Know Your Customer and Anti-Money Laundering systems, Bithumb decided to open branches abroad with the ICO. This is the same path that Coinone, the third exchange by volume in South Korea, has taken, as it has recently announced that it will launch an exchange in Indonesia in June.