Cryptocurrency exchange Huobi takes action for Bithumb

Cryptocurrency exchange Huobi is reportedly taking action to buy Bithumb.

In Bithumb, which is seen as the largest cryptocurrency exchange in South Korea, shareholders decided to sell their shares, and the Chinese stock market Huobi also took action.

According to the news in the Korean media; Wanting to buy an exchange that can be verified with real name, Huobi took action to buy the Bithumb stock exchange, following the new financial laws enacted in Korea. There are currently only 4 exchanges in South Korea that can verify accounts with real names. These; Bithumb, Upbit, Coinone and Kobit.

Huoban’s income arriving in Turkey shortly before the market is provided largely from China. Most of the managers and employees are Chinese. Huobi, who announced that he withdrew from the US market in November 2019, later became interested in Japan and South Korea. There were even reports that the exchange would buy Bitflyer, Japan’s largest cryptocurrency platform with 2.5 million users. According to the data on CoinGecko, Huobi ranks 7th in the world in terms of transaction volume. Bithumb ranks 12th, Bitflyer 19th.

The Huobi exchange announced in 2018 that it took control of the BitTrade exchange, which has a legal license in Japan. In 2020, Huobi’s own token, HT, received limited approval in Japan. Despite the acquisition of BitTrade, the trading volume and the number of KYC users were very limited both in Japan and South Korea, and the HT token transaction volume was disappointing by not being able to exceed a certain level.

In Japan and South Korea, cryptocurrency trading volume is actually substantial, but users and investors conservatively generally prefer local exchanges. In this sense, it seems like a very logical move for Huobi to want to buy the stock exchange that has this serious number of users.

2019 revenue is 680 million dollars

The willingness to buy is an indication that Huobi’s economic strength is also appropriate… It is stated that Huobi will be able to use the profits from derivative contracts and other investments this year easily for this acquisition. While it was stated that the 2019 revenues of the China-based stock exchange were around $ 680 million, it was informed that 50 percent or slightly more of this figure was profit. Due to the crypto money price increases in 2020, this profit is expected to increase by more than 50 percent by the end of the year.

However, Japan controls the cryptocurrency in a more conservative way and the finance ministry has tight pressure on ICO and crypto derivatives.

The South Korean cryptocurrency community, which has faced serious regulations in recent years, has therefore not experienced a full growth. Here, too, it cannot be predicted how the state will react to an attempt by a China-based exchange to acquire South Korea’s largest platform.

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