The news revealed in an exceeding website indicates that the South Korean crypto exchange Bithumb is going to expand its operations to the Middle East. As per Coindesk peninsula, the firm proclaimed that it had signed a note of Understanding (MOU) with the UAE-based company Nvelop to spearhead a venture within the country as a fiat-to-crypto exchange.
Through the new venture, Bithumb plans to expand its reach to countries within the Middle East and North Africa (MENA) region. The region has been a beehive of activity as several crypto and blockchain ventures have established a look within the space. One different example is Huobi, which is within the method of increasing to the MENA region.
A spokesperson of Bithumb informed us that the new exchange will diversify Bithumb’s business overseas.
The partnership with Envelope will enable us to build a foothold in the Middle East as a global exchange. This year, we will diversify into a business centered on overseas business.
Patrick Moynihan, CEO of Blockchain Industries, expressed his excitement over the merger.
We are thrilled to be part of this important initiative that is expected to bring liquidity, accessibility, and expansion to the blockchain industry. By merging with BTHMB/BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus.
Blockchain Industries is a company publicly listed in North America. It signed a binding letter of intent to merge with the parent company of Bithumb, BTHMB HOLDINGS Pte. Ltd, which is registered in Singapore. As a result, Blockchain Industries can shortly become the Blockchain Exchange Alliance.
Just last week, Bithumb launched a world over-the-counter (OTC) mercantilism table for digital assets through its Hong Kong-based entity, Bithumb World.
Bithumb is also seeking to go public within the U.S. through a reverse merger deal. In January, the firm signed a binding letter-of-intent agreement with Blockchain Industries, an investment trust that specializes in the crypto and blockchain business and is listed on the U.S. unlisted markets.
The latter happens once a personal company acquires an in-public listed company directly. This then allows the non-public company to bypass tons of procedures to create an entry into a precise market. This kind of move is sometimes remarked as a reverse initial offering.
Last year, the UAE’s money market regulator, the Money Services Administrative Body (FSRA), signaled that it would introduce a regulative framework for the cryptocurrency sector, licensing businesses that deal in digital assets.
According to the FSRA’s plans, the agency can introduce the licensing system in the first half of this year.
Once the deal is complete, the combined entity would be called Blockchain Exchange Alliance (BXA), and will doubtless become the primary U.S.-listed crypto exchange. The corporations aim to complete the deal by March 1.
Bithumb was notably hacked for around $30 million back in June 2018; however, it claimed to have clawed back almost 0.5 of that quantity shortly when with help from different exchanges. After many months of reconstruction of its security systems, the firm relaunched user registrations last August.