South Korean crypto exchange Bithumb has announced a strategic partnership with Singapore-based exchange, Bitmax.io. This move will create new opportunities to reach global traders and investors.
BOTH EXCHANGES EXPERIENCING GROWTH
The two exchanges are among the most popular in terms of liquidity, with each having over USD $350 million in adjusted trading volume per day. Bithumb is among Korea’s largest, having been in business since 2014. Singapore-based Bitmax is much newer, having been founded in 2018, yet it has quickly developed a reputation for innovation and its aggressive growth strategy.
As with many larger exchanges, Bithumb and Bitmax have begun to diversify their options, offering services such as margin and derivatives trading.
On the partnership, Bitmax CEO Dr. George Cao has stated
Rigorous product innovation has always been a key point of differentiation for our institutional-grade trading platform. We are thrilled about this exciting opportunity to combine that approach with Bithumb Korea’s deep crypto business expertise. Both institutions will work closely on the delivery of synergistic services and products to our global users across the digital asset ecosystem.
It is worth noting that this move is a partnership, but does not appear to be a merger. Both exchanges should continue to exist as independent entities. Also, the extent to which the governments of South Korea and Singapore approve of this deal is not known, but it can be assumed that they have given it the green light.
PARTNERSHIP REPRESENTS MATURATION OF CRYPTO MARKETS
Deals such as these reflect the increasing institutional development of the blockchain space. Major exchanges, such as Bithumb and Bitmax, are seeking to establish reputations for reliability and professionalism. They are also fully compliant with regulations such as know-your-customer and anti-money-laundering laws.
Importantly, these and other exchanges are aggressively courting institutional clients, which are soon expected to begin investing in blockchain assets. Thus, cross-border partnerships create an attractive international presence and open the door to greater expertise in different financial sectors.
Whereas the increasing professional nature of exchanges is a welcome sign to many crypto advocates, it also creates challenges. This shift is forcing governments to directly address the blockchain revolution, which could result in a hostile backlash. Also, blockchain architecture is, by design, decentralized. Many of the services offered by these exchanges may not be necessary once cryptocurrency achieves mainstream use.
As with other aspects of blockchain development the means by which cryptocurrency is bought and traded continues to evolve. The advancement of centralized exchanges indicates that their operators are planning for a long-term presence in the sector.
What do you make of the new Bithumb partnership with Bitmax? Add your thoughts on it below!
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