South Korean Crypto Exchanges Still Profitable, Including Hacked Bithumb

Bithumb, South Korea’s second-largest cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, is still profitable after suffering one of the biggest hacks in cryptocurrency history. A public report released by the company revealed that it has made a $35 million profit in the third quarter of the year.

This is after the company posted an extraordinary annual gain of nearly $400 million in 2017 on the back of the national frenzy over digital money. At the time, global trading volumes ‎held steady above ‎‎$40 billion when the virtual asset class gripped the attention ‎in Korea and worldwide alike.‎

The exchange recorded an estimated writedown of $40 million for the funds used to compensate customers, i.e. it should have gained $70 million without losses incurred due to the security breach occurred in June.

Bithumb makes money from trading volume when Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term ‎change ‎hands between investors. The exchange is a subsidiary of the publicly traded company BTC Korea.Com, ‎and it is thus obliged to file its audited accounts to the Financial Services ‎Commission (FSC).‎

By comparison, Upbit, No. 1 operator in South Korea with a market share of over 50 percent, earned $70 million in the same three-month period, putting the Kakao-backed exchange's profits roughly on par with those of the world’s top crypto venues.

Earlier in May, Upbit was raided by government’s investigators and local police for alleged fraud. However, the exchange managed to pass independent audits, showing full solvency as Upbit’s reserves ratio stands at 103 percent and cash ratio stands at 127 percent.

The solid earnings are definitely good news for the industry in South Korea, which has been cracking down on the cryptocurrencies to combat excessive speculation and illegal activities, part of a push by governments around the world to rein the nascent sector in. Over the past few months, Korean authorities have raided several crypto venues, banned ICOs, blocked foreigners and financial institutions from domestic exchanges.