Crypto Exchange Bithumb to Talk to Indian Government About A Regulated Exchange
South Korea-based cryptocurrency exchange Bithumb Global is now looking to build a regulated bitcoin exchange in India.
The digital asset trading platform will engage with the Indian regulators to build the exchange, Bithumb said.
Meanwhile, the Supreme Court of the country is hearing a case where the Reserve Bank of India (RBI) restricted banking channel to virtual currency transactions. A government panel has also recommended a ban on crypto trade.
High Liquidity for Indian Retail Traders
The company is looking to expand in the country by partnering with local cryptocurrency exchanges, fund crypto startups, and introduce new initiatives for local traders, said Bithumb co-founder and managing director Javier Sim.
“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,”
The exchange will start by partnering with local crypto firms that follow a peer-to-peer transaction model, allowing buyers and sellers of cryptos to trade amongst themselves, eliminating the banking channels.
The launch of Bithumb Global, Sim said will allow Indian retail traders “to have high liquidity” while offering
“lower transaction costs compared to competitors to penetrate a market like India.”
Trade volume on Indian crypto exchanges has fallen following the RBI ban on crypto trade, forcing many to even shut down their platforms.
A Staging Option to Invest in New Blockchain Projects
Bithumb suffered a loss of $180 million in 2018 due to hacks and a bear market in South Korea.
Now, on the prospect of ensuring safety for Indian users in the event of a hack, Sim said,
“We have learnt from those incidents and are using industry leading wallet systems. We as a leading, global exchange assign top priority to users' assets.”
The exchange is looking for the
“right companies to partner with and invest in those that have knowledge of the Indian market,”
The company will also invest capital in Indian blockchain projects through a “staging” option which works like an initial public offering (IPO) in traditional markets.
Traders can show interest in new blockchain projects — this could mean anything from a new cryptocurrency or a new blockchain-based service — by locking up their existing crypto asset such as BTC and ETH in Bithumb Global’s vault.
If a trader is assigned a stake in a project, the digital asset will be used as payment, if not, it will be deposited back into the trader’s account.
“We look forward to supporting Indian projects, such that Indian tokens are traded in a global exchange,”