South Korea's largest cryptocurrency exchange, Bithumb, plans to introduce its native cryptocurrency, Bithumb Coin, later this year. This strategic move aligns with global trends where major exchanges like Binance, KuCoin, and Huobi have successfully launched their proprietary tokens.
Understanding Bithumb Coin
- Purpose: While specifics remain undisclosed, Bithumb Coin will debut in two distinct types or phases, targeting institutional investors rather than retail participants.
- ICO Model: Mirroring Telegram’s approach, individual investors may access token sales only through consortiums or partnerships with accredited entities.
👉 Discover how leading exchanges leverage native tokens
Regulatory Landscape in South Korea
Kakao’s Blockchain Ventures
Kakao, South Korea’s tech giant behind KakaoTalk, explored relocating its blockchain division to Switzerland due to the country’s ICO ban. This highlights:
- Government Response: The Financial Services Commission (FSC) is evaluating tax frameworks to potentially legalize domestic ICOs.
- Tax Considerations: Proposals include VAT, capital gains tax, and corporate tax adjustments for crypto exchanges.
Bithumb’s Unique Position
As a publicly traded entity under BTCKorea, Bithumb faces heightened transparency requirements:
- Disclosure Obligations: Must publicly report financials, complicating ICO execution.
- Strategic Silence: Withholds further ICO details until regulatory and operational readiness is confirmed.
FAQ: Bithumb Coin and South Korea’s Crypto Market
Q1: Can retail investors participate in Bithumb’s ICO?
A1: No. The initial sale is exclusive to institutional investors, though retail access may open via pooled investments.
Q2: Why is Kakao moving its blockchain operations overseas?
A2: To bypass South Korea’s ICO prohibition, leveraging Switzerland’s crypto-friendly regulations.
Q3: Will South Korea legalize ICOs soon?
A3: The FSC is actively discussing tax policies to pave the way for regulated domestic ICOs.
👉 Explore global crypto exchange trends
Sources: CCN, The Korea Times
### Key Features:
- **SEO Keywords**: Bithumb Coin, South Korea ICO, cryptocurrency exchange, Kakao blockchain, institutional investors, FSC regulations.