Bithumb to Co-Launch Token Exchange in US Via New Deal

Bithumb, South Korea's biggest cryptocurrency exchange, has signed a deal with SeriesOne, an American ICO company, according to Yonhap News which cites industry sources.

Under the terms of the partnership, the two entities will set up a regulated security token exchange in the US. The new venture will be managed by SeriesOne, with Bithumb providing investment and technical support.

Tokens as Securities

A Bithumb spokesperson said: "SeriesOne actively sought to strike a deal with Bithumb after assessing it as the most suitable partner. Bithumb will ramp up efforts to develop into a global financial firm as the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based asset Tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term is expected to spread globally down the road."

Florida-based SeriesOne's product is a fundraising/marketing service for startups. Before accepting a customer, it reviews their business plans and tax returns. If they are approved, they are promoted by and raise money via SeriesOne.

The company is licensed by the US Securities and Exchange Commission. It treats tokens as securities, and refers to initial coin offerings as ITOs on its website. In the US, failing to register a contract which the government later decides is a security can get you jail time.

The firm has a branch in South Korea and aims to go public in the US in the second half of next year.

Global Financial Firm

Bithumb is South Korea's leading cryptocurrency exchange. It is difficult to say exactly how busy it is; according to coinmarketcap.com, it reports $1.7 billion in trades over the last 24 hours, while on cryptocoincharts.com this figure is $176.5 million.

In addition to this, it was reported in September that around $250 million of the exchange's daily volume was fake - the result of a clever scammer taking advantage of a daily special offer by wash trading and taking home a free $90,000 daily.

Nonetheless, the company successfully passed a three-month-long government tax audit in June, the result of accusations of tax avoidance in 2017, and reported $35 million in profit in the third quarter of 2018. This was despite using $40 million to reimburse customers after a major hack took them for $31 million.

In October, a majority of the Bithumb was purchased by a Singapore-based businessman who made his money from plastic surgery,

The company registered itself in Cardiff in February, ready to conquer London, although nothing seems to have come of that just yet, and in July it applied for Japanese and Thai licences too.

Bithumb's customer center moved to a larger facility located in Gangnam! ?https://t.co/YhYBpxISk2

We have counselors who can speak English, Chinese and Japanese. pic.twitter.com/7YKhHuiShp — Bithumb (@BithumbOfficial) March 19, 2018