Bithumb to launch crypto exchange in UAE

Bithumb is launching a cryptocurrency exchange in the United Arab Emirates (UAE) together with Emirati start-up N-velop.

According to Bithumb, the Korean exchange operator signed a memorandum of understanding (MOU) with N-velop to open an exchange in the UAE as a joint venture. The two companies’ plan is to open the first exchange in the UAE that accepts legal tender.

Last year, the UAE launched a framework to regulate cryptocurrency activities in Abu Dhabi through the financial authorities of the free economic zone Abu Dhabi Global Market.

The framework includes a requirement for cryptocurrency exchanges to be licensed before operations. According to Bithumb, the regulator will begin issuing these licenses to qualified exchanges this year.

N-velop is a joint venture of E11, an investment company that has worked with the government in Abu Dhabi, and Trill Ventures Group, based in Taiwan and Dubai. N-velop is said to have conducted several projects involving digital services with the UAE royal family.

Bithumb said it plans to use the partnership with N-velop to expand business into other Gulf nations, such as Saudi Arabia and Bahrain.

“We secured a foothold to establish our position as a global cryptocurrency exchange in the Middle East through the partnership with N-velop,” said a Bithumb spokesperson.

“We will try to become a leading global blockchain company by focusing on various overseas ventures this year.”

Last November, the exchange operator announced it was working with U.S. crowdfunding platform seriesOne to build a security token exchange that sells security tokens.

Bithumb has also said it is looking at possible areas of cooperation with a Russian company.

BY KIM EUN-JIN [kim.eunjin1@joongang.co.kr]