South Korea’s largest Bithumb crypto exchange, has recently sold 50 percent of its stake to BK Global Consortium at a valuation of $350 million USD. The deal brought about a disagreed number of views with both critics and optimists giving legal points to why the deal with BK Global Consortium won’t/will work. The Bithumb cryptocurrency exchange has moved from a profit-maximizing entity to a more security driven exchange to enhance investor protection. However, the depositors show confidence in the deal which assures more concentrated courtesy to the security and user-friendly platform to outcompete its indigenous rivals in Upbit and Korbit and internationally including Binance and Coinbase.
BK Global Consortium, a subsidiary of Singapore-based BK Medical Group, secured the deal with South Korea’s largest digital asset trading platform on October 12, 2018, as Kim Byung-gun, a noticeable plastic surgeon and blockchain investor playing a crucial role in bringing the deal to a close.
Due to its ties with Singapore, BK is likely to be observing that market on the heels of Binance and Upbit which have already announced plans for expansion to the island nation. Unchanging banking services and a blockchain- and the crypto-friendly environment has made Singapore a likely venue for Bithumb crypto exchanges global expansion.
Bithumb crypto exchange, in spite of a number of security openings and high profile hacks, has secured its position as one of South Korea’s leading crypto-currency exchanges, along with Upbit. As per Asia Times, it means that all of South Korea’s major exchanges are now operated by large-scale conglomerates.
Bithumb crypto exchange is not the only exchange to be acquired by a large corporation as its competitors to have a stake owned by corporations including Upbit, run by Kakao, Gopax is run by the country’s largest commercial bank Shinhan and Korbit is run by $15 billion worth company, Nexon. As stated in Reuters, BK Global Consortium, led by Kim Byung-gun, plastic surgeon and blockchain platform investor, has recently signed a contract to purchase more than 50 percent one share in the exchange’s major stakeholder, BTC Assets, for about 400 billion won.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]