The South Korean exchange Bithumb will launch its own currency: Bithumb Coin

Bithumb Coin

Some of the largest cryptocurrency trading platforms, valued in billions of dollars, such as Binance, Kucoin and Huobi, have already launched their own tokens, which can be negotiated with other cryptoactives and also used to pay commissions. In Binance, for example, users can benefit from lower rates in trading through the use of Binance Coin, and the company benefits from the funds it has raised through the ICO, which are used to cover operating costs.

In an interview with News1, Bithumb revealed that Bithumb Coin will be released in two parts or types, but the company has not disclosed any details about the structure or purpose of its token. More importantly, Bithumb assured the media that his intention is not to conduct a public ICO, but a sale of tokens aimed at institutional investors and large-scale investment firms.

Like most large-scale ICOs, such as Telegram, individual investors will only be allowed to participate in the sale of the token, join a large group of other individual investors or partner with institutional investors to buy Bithumb Coin.

Kakao example

Earlier this year, Kakao, the largest Internet conglomerate in South Korea that operates KakaoTalk, KakaoPay, KakaoStock, KakaoTaxi and KakaoStory, five applications that have more than 90% proficiency in their respective industries, including messaging, brokerage , ride-hailing and media, announced that they are likely to drive their offer out of South Korea, due to bans by the government.

Kakao suggested that he could permanently move his blockchain initiative to Switzerland, as a separate company to Kakao, and simply manage it as a subsidiary. It is expected that the potential of the ICO and Blockchain of Kakao is worth billions of dollars and the relocation of the Blockchain company in regions such as Switzerland, negatively impact the local Blockchain sector of South Korea.

Recognizing the importance of Kakao's initial offer, and the value of his Blockchain business, the South Korean Financial Services Commission (FSC) revealed - almost immediately after the rumors surrounding a possible ICO were disclosed by the company. it could legalize national ICOs in the near future, if by then the relevant tax policies exist.

"The financial authorities have been talking with the country's tax office, the ministry of justice and other relevant government offices about a plan to allow ICO in Korea when certain conditions are met," a source told the Korea Times.

Another source added that the government is mainly concerned with the tax aspect of token sales and, as soon as it is resolved, the initial national offers will be legalized.

"Several scenarios such as the imposition of the value-added tax, a tax on capital gains or both on trade. It is also discussing the collection of corporate taxes from exchanges of local cryptocurrencies, as well as the start of authorized exchanges with licenses, "said the second source.