Bithumb May Pour Over $8M Into South Korea’s Regulation-Free Zone

Bithumb, one of the world’s largest cryptocurrency exchanges, could invest more than $8 million into South Korea’s regulatory sandbox. 

Via its daughter company GCX Alliance, Bithumb has shown intent to put 10 billion won ($8 million) into South Korea’s “regulatory free zone” in Busan, according to reporting from Seoul on Jan. 9. 

Regulation-free zone

South Korea’s second-largest city, Busan, has been the subject of prior headlines for its status as a deregulated outpost and for its desire to create a digital currency based on blockchain technology, as Cointelegraph reported in July 2019.  

In December 2019, KT, South Korea’s most sizable telecom company, announced the introduction of a blockchain-based currency local to Busan. 

Fund usage

Bithumb has shown interest in putting the 10 billion won toward the Tongsan Asset Exchange, located in Busan, as indicated by Korea’s Ministry of Small and Medium Venture Businesses, the Korean news article said. 

South Korea’s Financial Services Commission plans to review the endeavor with Bithumb near January’s end. 

The article added:

“The industry expects Bithumb to launch various blockchain-based financial businesses in Busan with this investment.”

According to a Jan. 6 Cointelegraph report, the Presidential Committee of South Korea recently pushed for the approval of crypto derivatives products in the country.