Revealed on Monday, South Korean Bithumb had reportedly accepted to collaborate with the Singapore-based exchange BitMax in developing a mutual blockchain and cryptocurrency infrastructure. In addition, this partnership also involves mutual penetration into the global market and the launch of common crypto services.
For Bithumb this collaboration will be a good starting point to accelerate its climb to the top of the global crypto market.
As reported by a Bithumb official:
“Bithumb will be able to get business ideas and know-how from Wall Street experts through the latest strategic partnership,” adding that “It will also keep trying to beef up its R&D capabilities and nurture the local blockchain market.”
Bithumb was founded in 2013 by BTC Korea and even now is one of the most widely-used cryptocurrency exchanges in the country. While Bithumb offers most of the popular tokens, it works only with the South Korean won in terms of fiat currency.
BitMax launched its operations back in 2018 with team members who are former Wall Street financial engineers and employees at respected financial companies like Deutsche Bank, Bloomberg, Goldman Sachs, and Barclays.
The Singapore-based company is in the top 15 exchanges worldwide in terms of liquidity, according to CoinMarketCap. This means that it is easier to buy and sell an asset through BitMax. Within the platform, investors trade digital assets but can also buy derivatives based on price variations of tokens.
George Cao, chief executive at BitMax shared his thoughts on the strategic move:
“Rigorous product innovation has always been a key point of differentiation for our institutional-grade trading platform. We are thrilled about this exciting opportunity to combine that approach with Bithumb Korea’s deep crypto business expertise. Both institutions will work closely on the delivery of synergistic services and products to our global users across the digital asset ecosystem.”
In 2017, Bithumb was featured in the criminal crypto activity chronicles as it was hacked. The leakage came from an employee’s computer, as opposed to the more commonly-known security breach, and affected around 3% of the exchange’s users. The company also made the headlines when it was fined $69 million by the South Korean Tax Authority.
In other, more recent news, Bithumb’s $350 million acquisition deal failed most probably because the investor – BK Consortium has financial constraints.