South Korean cryptocurrency trading platform – Bithumb – is taking steps to expand its business geography expanding to the Middle East via a licensed fiat-to-crypto platform to appear in the UAE.
According to the local media, the exchange has signed MOU with Emirati company Nvelop under which the companies will set up a JV to launch the platform in Abu Dhabi.
The cooperation with UAE-based company is believed to help the Korean exchange to strengthen positions in the MENA region adding Saudi Arabia and Bahrain markets to its portfolio in the long run.
Nvelop in its turn represents a JV between the investment fund E11 and Trill Ventures Group that was designed for providing financing backing to blockchain companies in the region.
Notably, the crypto exchanges in Adu Dhabi are subject to regulator's approval now. Specifically, the Financial Services Regulatory Authority launched the rules for crypto trading businesses last June. According to the regulation, all crypto trading platforms must receive licenses for business operations in the region. The new regulation also reportedly restrains the crypto assets that can be supported by the companies.
As a result, as Bithumb spokesperson noted, the Emirati crypto exchange can appear in the middle of the year in case of regulator's positive determination. This move came just in a week after Bithumb reportedly inaugurated its global over-the-counter platform aimed at institutional clients.