Bithumb Global is a trading platform that was launched in May 2019 by Bithumb, one of the largest and oldest crypto exchanges in the Asian market. The South Korean giant’s subsidiary is famous for offering an extensive choice of tools and innovative financial solutions. The firm’s key mission, however, is to provide the crypto community with a universal platform for listing projects originated in various countries and regions. DeCenter figured out how a leading trading venue achieves its goals and makes an entrance onto the international crypto stage.
Global Expansion of Bithumb
Bithumb is South Korea’s largest regulated cryptocurrency exchange, founded in 2014 by BTC Korea.com Co., Ltd. The introduction of advanced solutions and ease of use helped the exchange quickly reach the top, outplaying competitors in both South Korea and broader Asian region. Today, it is part of the Korea Blockchain Association, a self-regulated organization, and since 2018, it has been overseen by the country’s Financial Services Commission (FSC).
Ever since launch, international projects of various size have shown interest in Bithumb. Due to platform policies and regulatory scrutiny, however, the platform took off with listing Korean projects only, with settlements being made in the local currency. This caused Bithumb’s top management to launch a separate platform that would open up new opportunities in the foreign markets.
So the Bithumb Global project was born, which provides the worldwide crypto community with access to the all-in-one solutions of one of the top exchanges, uniting the best crypto projects on a single platform. No wonder that only six months into existence, the number of users who’d signed up for Bithumb Global was past one million.
Features of Bithumb Global
Today, the average daily trading volume on Bithumb Global stands at over $51 million, and more than 120 successful projects—whose coins are traded in 173 pairs—have been listed. Bithumb Global seeks to become a one-stop shop for promoting blockchain projects that are still in their infancy, helping them build strong communities. Just like its parent, Bithumb Global values its reputation, so for a new project to be listed, it needs to undergo a thorough audit first.
According to the official policy of Bithumb Global, its main task is currently to provide the international market with:
Channels of interaction with the active Bithumb community;
Breakthrough financial services and advanced technologies used on the exchange, for example, Staging;
Access to the open-source Bithumb Chain network and products powered by it;
Platform’s internal token Bithumb Coin (BT);
An improved mechanism for the settlement of orders, created on top of its own patented technology and algorithms;
User-friendly mobile apps for iOS and Android;
The ability to make deposits in local currencies using Visa and Mastercard.
Moreover, in March 2020, Bithumb Global invested in Xderi, a platform for the development of digital financial derivatives. And in April, it launched Smart Tokens trading with leverage for ETF products. Also, over the past year, 25 payment channels were opened allowing to purchase crypto with fiat, along with 12 payment methods that drastically improved the quality of service provided to users from 151 countries.
As you can see, Bithumb Global is committed to creating a multi-cultural platform where projects from different regions would be exposed to game-changing solutions. The crypto exchange supports 13 languages: Korean, English, Russian, Chinese, Japanese, Spanish, Arabic, German, French, Turkish, Italian, Indian, and Vietnamese. Tech support works 24/7 and is available in all of the languages mentioned above.
Bithumb Global’s Prospects
As part of its expansion, Bithumb Global is striving to win a strong position around the world. And economies where the exchange is represented—in particular, Turkey, Spain, and the C.I.S.—contribute to this goal the most. Let’s take a closer look at the prospects of Bithumb Global in each of these areas.
According to Statista’s 2019 Global Consumer Survey, residents of Turkey have become the most open-minded market players looking forward to mass adoption of cryptocurrencies. Last year, every fifth resident of the country at least once used cryptocurrencies or held them.
The reason for this is the unstable political situation in the country, the conflict with Syria, and the constant threats of a military coup, which all played a key role in the popularization of cryptocurrency in Turkey. It is also worth noting that the national currency, the Turkish lira, has lost almost half of its value since 2017. Locals see cryptocurrencies as not only a novel way of conducting cash transactions, but also as a tool to preserve the value of their own savings.
Moreover, according to the President of Turkey Recep Tayyip Erdoğan, by the end of 2020, the country’s authorities plan to pilot the central bank-issued digital lira. Along with the launch of the national cryptocurrency, the government intends to develop a special platform for instant payments with a new digital asset. The Scientific and Technological Research Council of Turkey (TUBITAK) will work on the project.
As for the E.U. countries, Spain saw the highest rate of cryptocurrency adoption growth back in 2019. According to the Review of the Legislative Regulation of Cryptocurrencies in Individual Countries from KPMG, back in 2014, the Spanish authorities recognized cryptocurrencies as electronic means of payment. At the same time, cryptocurrency transactions in the country are not subject to VAT. Also, since 2016, a law has been in force in Spain relating mining to economic activity, within the framework of which the corresponding taxation was introduced.
The residents of Spain can instantly exchange cryptocurrencies without intermediaries. Since 2017, a local startup HalCash has been operating an instantaneous crypto exchange platform connected to almost every ATM in the country. Thanks to this, anyone can swap cryptocurrencies for fiat or vice versa at the nearest ATM.
In the same year, the People’s Party of Spain suggested to integrate the blockchain technology into the work of state bodies. The proposal was reviewed and agreed upon within eight months. By the end of 2017, Spanish hospitals, cadastral services, and some postgraduate programs started using blockchain in document workflow. And in Catalonia, for example, an official blockchain-based voting system—which is scheduled for launch this year—was adopted and given a go-ahead. Spain is rightfully considered one of the most crypto entrepreneurship-friendly members of the European Union.
The C.I.S. and Russia
As for the C.I.S. countries—and specifically, Russia—in October last year, Javier Sim, the co-founder and managing director of Bithumb Global, stressed that the region was one of the first where the top-tier crypto trading platform began its world expansion.
Back in 2018, a decree “On the Development of the Digital Economy” was introduced in Belarus, and the concept of “smart contracts” was first formalized. As a result, cryptocurrencies entered into the legal field of Belarus. In May 2019, the country green-lighted Currency.com, the first legally-approved tokenized asset exchange across the post-Soviet space. It provides the opportunity to trade not only in crypto assets, but also the blockchain equivalents of other financial instruments such as stocks, index funds, and the world’s first tokenized government bonds. The crypto trading platform became the first player in the C.I.S. and one of the few projects to “blockchainize” various asset classes.
As for Russia, Javier Sim noted that the reason why the leadership of Bithumb Global decided to target Russian users first was because the market is large and has a huge potential: “This is one of the biggest countries in terms of economy and other indicators. Russian investors have a very mature approach towards investment decisions and demonstrate a deep interest in cryptocurrencies. Russian users were among the pioneers in this market,” said Sim.
Currently, the government is actively preparing a basic regulatory act that would define the legal status of cryptocurrencies and order of their circulation. We are talking about the “Law on Digital Assets,” which as of now is to be passed by the State Duma.
In March this year, the Ministry of Economic Development proposed a bill under which “regulatory sandboxes” will be created in Russia. They will help develop the norms and procedures for the legalization of cryptocurrencies and the ways to introduce the blockchain technology into various industries. The document outlines eight areas where the new legislation will be applied: medicine, transportation, remote education, trade, finance, construction, industry, and public services.
Javier Sim does also appreciate the quality of a number of Russian projects and believes that they can contribute to the development of the entire crypto industry. Bithumb Global’s arrival in the Russian market will inspire synergy, strengthening mutual relations between Russian and South Asian crypto communities. And this will give a certain positive impetus to the entire market.
To Sum Up
On May 14, Bithumb Global celebrated its first anniversary. During this short time, the trading platform has already established itself as a strong player in the cryptocurrency market. The exchange’s solutions include innovative technologies, while a wide range of tools it offers is suitable for both private crypto traders and larger projects willing to enter the international market. Given that the platform is eyeing the global expansion, its users and partners become active participants in the new financial world, playing a paramount role in its creation.