Bithumb cryptocurrency exchange plans on investing 10 billion won (US$8 million) in South Korea’s blockchain regulatory sandbox. The exchange will invest the money through its wholly-owned subsidiary GCX Alliance, with the money set to go towards a digital asset exchange.
Bithumb has expressed its willingness to be a part of the Tongsan Asset Exchange, a report by News1 Korea has revealed. The report cited an official from the Ministry of Small and Medium Venture Businesses who stated, “Bithumb and the Financial Services Commission will discuss about investment in Busan blockchain special zone from the end of January.”
Bithumb will partner with the local government in Busan in its initiatives, the first time an exchange is working with the government in the country. Traditionally, exchanges haven’t fared all too well with local authorities. However, with Busan going all out to encourage crypto businesses to set up operations in the city, things are looking up for the crypto industry.
According to the report, Bithumb is expected to use the investment to launch various blockchain-based financial businesses in Busan.
Being one of the earliest crypto exchanges in South Korea, Bithumb has been a trendsetter, greatly shaping the country’s crypto industry. The investment in Busan is especially strategic as the city is positioning itself as Korea’s crypto and blockchain hub. The city was selected in July last year as Korea’s ‘regulation-free blockchain zone’ and is the focal point of the Asian country’s blockchain efforts.
As CoinGeek reported, Busan is working on its own crypto. The city has partnered with the BNK Busan Bank in the project which it hopes will revitalize the local economy. Through the Ministry of Small and Medium Businesses, the Korean government has pledged to provide extensive support in the project.
Bithumb’s investment thus comes as a no-brainer as it would position the exchange right at the heart of the Korean crypto industry.
The exchange has been making major moves in the past few months, with international expansion into Singapore and India. It partnered with Bitholic, a Singaporean exchange in August as it sought to capture the vibrant market in Asia’s financial hub.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.