Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
South Korean cryptocurrency exchange Bithumb is reportedly re-evaluating its strategy to launch its own coins through a corporation in Singapore, following news of fraud that could have serious side effects to both companies. Under the current laws, Bithumb coins will still be subject to Korean regulation whether launched abroad or not.
Also read:Â Yahoo! Japan Confirms Entrance Into the Crypto Space
Bithumbâs ICO
One of South Koreaâs largest cryptocurrency exchanges, Bithumb, had a plan to launch its own coins for institutional investors through a corporation in Singapore.
On Tuesday, Bithumb confirmed that it is collaborating with Singaporean company B.Buster to âbuild a global [crypto] payment system.â The project is known as BTHB. âWe received some investment from Bithumb to proceed with the project. Through a contract to use the trademark, [we have] prepared the project name âBithumb Coin,â B.Buster explained.
However, local media reported on Wednesday that the companies are now re-evaluating this strategy.
The tokens were going to be issued by B.Buster, according to Sedaily, noting that the company is âre-examiningâ the project after hearing ânews of the issuance of the coins abroad, the coin resale, and investment recruitment fraudâ related to the unlaunched coins.
As soon as rumors that Bithumb was going to issue its own cryptocurrency circulated in the crypto community, ICO investor recruitment began in the market, Daum described. Etherscan, which provides data about Ethereum-based tokens, currently shows 2 Bithumb coin listings: 10 billion Bithumb Coin (BTHB) and 1 billion Bithumb Coin Point (BTHP). Bithumb denied having knowledge of these listings, the news outlet detailed.
Reconsidering Not Terminating
Prior to the re-evaluation, B.Buster said âWe have limited resale and distribution until the listing on the exchange,â the news outlet noted. However, if B.Buster is selling to general investors and not to institutions, it âwould be a breach of contractâ with Bithumb, the publication pointed out. âIn the meantime, the rumors spread and more investors are getting more and more concerned about the investorsâ protection, which is why the âreassessmentâ position was revealed.â
According to the news outlet, Bithumb and B.Buster expect to be âissuing a coin in the end,â calling the project a âreconsiderationâ rather than a termination.
B.Buster reportedly announced on Wednesday, âThere will be no public sale for the âBTHBâ project. Only selected institutional investors are allowed to participate, excluding citizens/entities of the Republic of Korea and Peopleâs Republic of China, and citizens/entities/residents of the United States of America.â The company noted that âAny sale at this point is only to institutional investorsâ that it is already in touch with. âPlease beware of scammers and impersonatorsâ pretending to be the company or its affiliated entities, B.Buster reportedly warned.
Korean Laws Still Apply
The financial authorities have warned that domestic cryptocurrency exchanges issuing and promoting their own tokens could have âserious side effects such as internal price manipulation,â Money Today reported, adding:
The current law also makes it clear that Bithumb coins are subject to [Korean] regulation. Under the Electronic Money Act coins whose value fluctuates like virtual currency cannot be a means of payment.
Recently, Kakao Corp was also rumored to be launching an ICO abroad. The Korean Financial Services Commission (FSC) also warned that the companyâs ICO, if launched, would still be subject to Korean laws and could have an adverse impact on its Korean subsidiaries.
What do you think of Bithumb launching its own coins? Let us know in the comments section below.
Images courtesy of Shutterstock, Bithumb, and Etherscan.
Need to calculate your bitcoin holdings? Check our tools section.
The post Controversy Looms Over Bithumb Coins appeared first on Bitcoin News.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.