Korea’s cryptocurrency exchange Bithumb has joined hands with United Arab Emirates’ venture start–up N-Velop to establish a government-licensed cryptocurrency exchange in UAE.
On the way toward that goal, the Korean cryptocurrency exchange has signed a MOU with the UAE venture start-up to establish a joint-venture in the Middle East country.
The JV will operate to get a government license to set up and run the UAE-based cryptocurrency exchange.
The UAE government released a regulatory guidance for cryptocurrency exchanges at the end of 2018 and decided to grant a government-authorized business license for prospective cryptocurrency exchanges starting from sometime in the first half.
The tie up with the UAE venture start-up would open up a new window opportunity for Bithumb to gain a foothold in its entry into the liquidity-rich, potentially huge Middle East cryptocurrency market.
Bithumb plans to expand its reach across the market, especially focusing on GCC, or Gulf Cooperation Council member countries like Saudi Arabia and Bahrain.
The JV establishment is also part of Bithumb’s recent overseas business expansion projects. Bithumb is now seeking to jointly establish a securitized token offering, or STO exchange with U.S. FinTech start up Series One. The company is also in talks with Russian companies to cooperate to tap into new market opportunities in Russia.
UAE-based N-Velop is a joint-venture company between UAE government-sponsored E11 investment funds and Trill Ventures Group to start blockchain businesses in the Middle East and Africa regions.