South Korea based highly-reputed cryptocurrency exchange, Bithumb Global has announced that is gearing up to launch a regulated bitcoin exchange in India with an intention to proliferate cryptocurrency trade in the Indian market space.
According to the news broadcast, Bithumb Global will strive to engage in negotiations with the Indian regulatory bodies to put in the first step towards building the new exchange.
The highest judicial power of the country, the Supreme Court is addressing the case put by the bitcoin operators where they have raised questions on the leading banking regulatory of India, the Reserve Bank of India to block banking channels for facilitating virtual currency trading. A government panel has also suggested a ban on the trading of cryptocurrencies in the Indian Territory.
Javier Sim, the co-founder and managing director of Bithumb Global stated that his firm has planned to exploit the Indian financial space by collaborating with native cryptocurrency exchanges, provide crucial funding to India-based cryptocurrency startups, as well as the introduction of new initiatives to induce Indian traders.
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,
said Javier Sim.
As per the roadmap of the company, it will collaborate with the local cryptocurrency firms that operate a peer-to-peer transaction model to make users opt for trading on its global platform. The peer-to-peer model employs technology networks to facilitate buyers and sellers of cryptocurrencies to indulge in trading activities without the involvement of banking channels.
Sim further stated that the exchange will render Indian retail traders to enjoy higher liquidity along with lower transaction costs in comparison to the competitors.
Following the RBI ban on crypto trading resulted in the sharp fall in the trade volumes in the Indian cryptocurrency exchanges leading to the closure of many from the lot. A $180 million loss was born by Bithumb in the year 2018 due to hacks and the bearish crypto market in South Korea. While throwing light on the counter mechanism for hacks in the future, Sim said that “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.”
We are looking for the right companies to partner with and invest in those that have knowledge of the Indian market,
said the leader while stating his future plans of investing capital in the Indian blockchain projects.
He added that the firm is planning to support Indian blockchain projects-be it a new blockchain-based service or a new cryptocurrency- through a “staging” process that works as an Initial Public Offering in traditional exchanges. The traders can lock their existing crypto tokens in Bithumb Global’s vaults to show interest in the new projects. When a trader is assigned a stake in the project, the token will be used as a payment or otherwise, it will be deposited back in his/her account.