Last week, BK Global Consortium acquired a 50% stake in Bithumb, the largest crypto exchange in South Korea. The acquisition is believed to be valued at $350 million.
The deal has left the majority of investors optimistic for the following reason: every large crypto exchange in the country is now operated by leading conglomerates; Upbit is managed by Kakao, Gopax by the Shinhan commercial bank and Korbit by Nexon.
Being operated by a multi-billion dollar corporation means a lot in South Korea. The most important factor is that Upbit, Gopax and Korbit have not been hacked, and have experienced no security breaches to date. South Korean conglomerates pay specific attention to protection of their names, values and brand image.
BK’s acquisition of a 50% stake in Bithumb means that the questions of security, efficiency of internal management and investor protection will be thoroughly addressed. This will have a positive impact on the overall crypto exchange market in the country. Moreover, since the BK corporation is connected to the Singaporean market, it is expected that Bithumb will expand into this country.