Latest news with #Bithumb
Coin Geek
26-05-2025
- Business
- Coin Geek
South Korea's DPK forms digital asset committee ahead polls
Getting your Trinity Audio player ready... The Democratic Party of Korea (DPK) has set up a new digital asset committee to aid in promoting adoption and formulating enabling regulations for the sector. Announcing the new committee, DPK Chairman Yoon Yeo-jun stated that digital assets have become critical to maintaining South Korea's economic sovereignty. However, regulatory uncertainty has limited growth in the East Asian nation. The new committee will address these gaps and establish supportive policies ahead of the upcoming presidential elections. 'We must actively embrace core assets of future finance, such as stablecoins, non-fungible tokens (NFTs), and security token offerings (STOs), and leap forward as a global financial hub,' stated Chairman Yeo-jun. Pro-crypto legislator Rep. Min Byeong-deok will head the new committee. He is behind the Digital Asset Basic Act, which establishes a legal framework for digital assets, including setting the foundation for a national stablecoin authorization framework. Min pledged to push new laws that 'protect investors and promote the industry.' 'We will clearly define the concept of digital assets in the basic law and establish a Presidential Committee on Digital Assets to secure the autonomy and transparency desired for digital assets.' In addition to lawmakers and party officials, the new committee includes officials from some of Korea's largest 'crypto' exchanges, such as Bithumb, Upbit, and Coinbit. Industry experts and academia were also included. Leaders woo 16 million digital asset holders as elections loom The new committee by the DPK is the latest in a string of initiatives targeting South Korea's vast digital asset community ahead of pivotal presidential elections. The polls, set for June 3, pit the party's Lee Jae-myung against the People Power Party's (PPP) Kim Moon-soo. Immediately after taking over as chairman of the new committee, Min pledged the Democratic Party's commitment to repealing the 'one exchange, one bank' rule, which he says has 'clear shortcomings.' The rule, established by the Financial Services Commission (FSC), requires each exchange to establish a relationship with one lender to enable easy fiat on- and off-ramps. As we reported, many small exchanges struggled to secure a banking partner, with most lenders wary of the risks that 'crypto' poses; the unclear regulations at the time didn't help either. The PPP is also targeting the 'crypto' faithful, with candidate Moon-soo pledging to protect investors if he takes the top seat. Moon-soo currently trails in the polls as he seeks to assume the role left vacant after Yoon Suk Yeol—his party colleague—was impeached last December. Moon-soo has also pledged to abolish the 'one exchange, one bank' rule, which he says has restricted the exchanges. He also wants to allow spot ETF trading within the following year. Bank of Korea wants stablecoin mandate Meanwhile, the Bank of Korea (BOK) has called on legislators to give it authority over won-pegged stablecoins, saying they could disrupt the country's monetary policies. USD-pegged stablecoins dominate the South Korean 'crypto' market, but local firms have been exploring won-based alternatives as stablecoins become a critical part of the sector. If lawmakers legalize these won-based tokens, BOK should be given an oversight mandate, says Koh Kyung-chul, who heads the bank's electronic finance department. 'Stablecoins have a significant impact on central bank policy implementation, including monetary policy, financial stability, and payment and settlement. Regarding issuer entry regulations, the central bank needs to be granted substantial legal authority at the authorization stage,' stated Kyung-chul. His remarks were reiterated by another senior BOK official, who told one local outlet that stablecoins 'could complicate monetary policy operations, necessitating BOK's involvement in the authorization process.' The unnamed official claimed that in other countries, including the United States, central banks are at the heart of stablecoin policymaking. Stablecoins have become integral to the digital asset sector and beyond. Citi (NASDAQ: C) projects a $3.7 trillion market cap by 2030, while a separate report said issuers will hold more U.S. Treasuries than China and Japan. But while the BOK calls for regulatory supremacy, legislators have questioned whether the central bank is best suited to police the sector. Rep. Min Byeong-deok, who was recently appointed the chairman of the DPK's digital asset committee, is the latest to cast doubts over BOK's ability. He stated that if the party wins the June 3 elections, it will discuss who should oversee stablecoins between the BOK and the FSC. The Democratic Party's candidate, Lee Jae-myung, has a substantial lead in the polls. Watch: It's time for regulation to enable blockchain growth title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Korea Herald
22-05-2025
- Business
- Korea Herald
Bitcoin surges to new high; kimchi premium remains modest
Bitcoin, the world's biggest cryptocurrency, reached a record high of $110,000, backed by growing industry optimism, Thursday. Trading denominated in the South Korean won neared its peak as well, hovering at around 150 million won ($108,700) as of press time. Regulatory developments in the US stoked industry optimism that the country will shortly agree on its first regulations for digital assets, boosting investor sentiment for the cryptocurrency. According to global price-tracking platform CoinMarketCap, the price of bitcoin surpassed $110,000, reaching an industry milestone. As of 2 p.m., it traded at $111,461, marking a 3.7 percent gain from 24 hours earlier. Cryptocurrency exchanges in Korea operate in a relatively isolated environment from the global trading market, as they are restricted to trading exclusively in Korean won. Bitcoin traded above 154 million won as of 2 p.m. on the nation's largest crypto exchange Upbit. It traded similarly on Bithumb, the second-largest crypto exchange here. The crypto previously peaked at roughly 160 million won on the local market in March, before it inched down to as low as the 110 million won range on April 7, as risk aversion grew with the US tariff policy creating market uncertainty. With the surge in global trading prices of bitcoin, the 'kimchi premium' — the price gap between the cryptocurrency's value in Korea and international markets — fluctuated at below 1 percent, meaning trading prices in Korea were around 1 percent more expensive than globally. Though the price gap remains relatively stable compared to when it was pushed to nearly 10 percent in February, experts pointed out that it has widened in recent days with gains in the Korean won. Theoretically, the kimchi premium strengthens when the won gains value. 'The price discrepancy has widened from minus 1 percent to plus 1 percent, meaning the kimchi premium has strengthened,' said Kim Min-seung, head of research at Korbit, one of Korea's top five cryptocurrency exchanges. 'But there are various factors impacting the kimchi premium. It does not always move in accordance with currency fluctuation. We cannot pinpoint a single reason that drives up or weakens the phenomenon."
Arabian Post
20-05-2025
- Business
- Arabian Post
Bithumb's Market Ascent Fuels Ambitious 2025 IPO Plans
Bithumb, South Korea's second-largest cryptocurrency exchange, has significantly increased its market share, now handling approximately 25% of the nation's crypto trading volume, up from under 10% in 2023. This surge positions the company for a planned Initial Public Offering in the latter half of 2025, with Samsung Securities appointed as the lead underwriter. The exchange's growth strategy included the elimination of transaction fees for all supported digital assets, a move that temporarily boosted its market share to a peak of 72% in early 2024. This aggressive approach allowed Bithumb to momentarily surpass its main competitor, Upbit, which has traditionally dominated the South Korean crypto market. Bithumb's decision to pursue an IPO is not primarily driven by a need for capital infusion. According to its semi-annual report, the company holds financial assets exceeding 400 billion won . Instead, the IPO aims to enhance corporate transparency and governance, thereby rebuilding public trust following past controversies involving its leadership. The exchange has undergone significant leadership changes in preparation for the IPO. Former Chairman Lee Jung-hoon has returned as a registered director, while Jaewon Lee has been appointed as the new CEO of Bithumb Holdings. These changes are part of a broader effort to strengthen the company's governance structure and align with regulatory expectations. Bithumb has also shifted its banking partnership from NH Nonghyup Bank to KB Kookmin Bank, South Korea's largest financial institution. This move is expected to enhance the exchange's credibility and attract a broader customer base, including institutional clients. Despite these advancements, Bithumb faces ongoing regulatory challenges. The Financial Intelligence Unit initiated an on-site inspection in March 2025 to assess the exchange's compliance with anti-money laundering regulations. The outcome of this investigation could significantly impact the company's IPO timeline and investor confidence. See also LockBit Breach Unveils 60,000 Bitcoin Wallets and Affiliate Data Bithumb is considering listing options beyond South Korea, including a potential listing on the U.S. Nasdaq. This consideration arises from the complex regulatory environment in South Korea, where cryptocurrencies are not recognized as legitimate financial products, potentially complicating domestic listing procedures. Financially, Bithumb reported a net profit of $110 million in 2024, reflecting its robust market position and operational efficiency. The exchange's commitment to regulatory compliance and technological enhancements has contributed to its resilience in a volatile market. Arabian Post – Crypto News Network
Bloomberg
19-05-2025
- Business
- Bloomberg
Bithumb Claims Larger Slice of Korea's Crypto Space Ahead of IPO
After years spent in the shadow of larger rival Upbit, crypto exchange Bithumb is clawing back a more meaningful share of South Korea's tightly held digital-assets market. Bithumb now consistently accounts for about a quarter of the country's massive crypto trading volumes, up from a single-digit market share in 2023, according to Kaiko data.
Crypto Insight
14-05-2025
- Business
- Crypto Insight
South Korea's Democratic Party sets up ‘Digital Asset Committee'
The largest political party in South Korea, the Democratic Party, has launched a Digital Asset Committee focused on developing cryptocurrency policies and promoting industry growth. The committee held its inaugural meeting at the National Assembly Members' Hall in Seoul on May 13, the local news agency News1 reported. During its first meeting, the committee highlighted the importance of resolving regulatory uncertainty and addressing burning issues like stablecoin regulation amid the push for US-dollar stablecoins by the US government. The new committee joins similar organizations in South Korea, including the Virtual Asset Committee launched in late 2024 and another public-private crypto task force introduced in 2022, both initiated by the Financial Services Commission (FSC). Exchanges like Upbit and Bithumb involved The leadership of the Digital Asset Committee includes South Korean officials and politicians, such as National Assembly Chairman Min Byeong-deok, who joined the committee as chairman. Additionally, the organization features standing general election committee Chairman Yoon Yeo-joon, Muksanism Committee Chairman Maeng Seong-gyu, National Assembly member Kim Byeong-gi and former National Assembly Chairman Kim Jeong-woo. According to a report by ChosunBiz, the committee will also include participation of executives from major local exchanges, including Upbit, Bithumb, Coinbit and Gopax. Criticism of 'one-exchange, one bank' rule At the opening meeting, committee Chairman Min expressed concerns regarding limitations of South Korea's current one-exchange-one-bank rule, implying that crypto exchanges are restricted to collaborating with only one lender. 'There are clear shortcomings to the one exchange, one bank principle,' Min reportedly said, adding that the committee is working with regulators to resolve the issue. The chairman also mentioned discussions about which regulators should supervise the stablecoin industry and whether stablecoins should be subject to a licensing or reporting system. 'There is also a point of contention as to whether the Bank of Korea or the FSC should handle the regulation,' he reportedly said. The news came shortly after a Bank of Korea executive expressed concerns over the issuance of the South Korean won-backed stablecoins. 'Stablecoin has a great impact on the implementation of central bank policies such as monetary policy, financial stability, and payment settlement,' Bank of Korea's Koh Kyung-chul reportedly said at a conference on May 12. 'The negative impact on the central bank's policy implementation should be minimized by the central bank's practical intervention in the approval stage,' he added. Source:
