One of South Korea’s leading cryptocurrency exchanges, Bithumb, plans to issue its own token, The Cointelegraph has reported, citing information from a local media outlet.
According to a Thursday report, published in Korean publication TokenPost, the new token, dubbed Bithumb Coin, will be issued via an initial coin offering (ICO) that will be conducted in Singapore due to the ongoing ban on such token sales in South Korea. The report says that the ICO will be aimed at large-scale investors, rather than individual investors. The media outlet also says that Bithumb did not confirm any details regarding the ICO’s launch date or its size.
As noted by The Cointelegraph, Bithumb is not the first cryptocurrency exchange to issue its own digital token. In January, Chinese trading platform Huobi, which is currently headquartered in Singapore, announced plans to launch issue 500 million ‘Huobi Tokens’ (HT) and sell 300 million of those coins to its users. However, the company insisted that the token issuance was not an ICO. Instead, the company described the tokens as a way to gather service fees upfront, adding that its ultimate goal was HT to become an asset that connected users through Huobi’s overseas exchanges.
In early September China became the first major cryptocurrency market that imposed a ban on initial coin offerings. South Korea followed suit later that month, by banning all upcoming domestic ICOs and warning of “stern penalties” for a financial institution or issuer of any kind who violates the restrictions.
Last month, the head of South Korea’s financial watchdog, the Financial Services Commission (FSC), told reporters that he maintained negative stance on a rumoured overseas ICO by the South Korean mobile messaging giant KaKao. The social media company subsequently denied the ICO rumours, but announced that it was launching a new blockchain subsidiary.