South Korean cryptocurrency exchange, Bithumb revealed that it has secured a memorandum of understanding with Chinese cryptocurrency exchange BitMax.
Based on reports, Bithumb exchange agreed with the Chinese exchange to develop their blockchain and cryptocurrency infrastructure together. Besides, the collaboration reportedly entails rolling out new crypto services and tapping into the global markets together.
The South Korean exchange also sees the agreement as a springboard to rise into the top echelon of the global crypto market.
A Bithumb official said: “Bithumb will be able to get business ideas and know-how from Wall Street experts through the latest strategic partnership.” He added that the exchange plans to keep beefing up its R&D capabilities and nurture the local blockchain market.
About Bitmax and Bithumb
The Chinese crypto exchange commenced operation in 2018 by CEO George Chao. Besides, Bitmax claims they attract several Wall Street financial engineers who worked for global financial firms like Barclays and Deutsche Bank.
According to CoinMarketCap, the Chinese firm stands among the top 15 global exchanges in the world in terms of liquidity. This liquidity index gauges the ease of buying and selling an asset. Aside from serving as a platform for investors to trade digital coins, the Chinese crypto exchange also sells derivatives based on price fluctuations of tokens.
Bithumb remains one of the most popular cryptocurrency exchanges in South Korea. BTC Korea founded the exchange in 2013. The exchange also offers almost all the popular tokens, but only offers one fiat, Korea Republic’s won.
The exchange got hacked in 2017, which affected about three percent of their users. Although, the hack wasn’t due to security, as the entrance came from an employee’s system.
Also, Bithumb’s proposed acquisition by BK Consortium fell through. This most likely resulted from financial constraints on the part of the BK Consortium.
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