Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.
The South Korean cryptocurrency giant Bithumb partnered a US-based fintech company seriesOne in a bid to launch a complaint security token exchange for American customers.
After being hacked for as much as $31 million, the notorious cryptocurrency trading platform Bithumb seems to recover from their latter misfortunes as the exchange has been expanding a partnership network focusing on the today’s hottest trend, a security token.
It became known that the other day South Korean exchange has signed a deal with the U.S.-based crowdfunding platform seriesOne, whereas the main target of such a promising collaboration pertains the mainstream promotion of security tokens within American crypto-community.
Why Security Tokens?
As the part of their rehabilitation process, the exchange that lost millions of crypto-investment in the wake of cyber-attack, has picked up security tokens and there is a reason for that.
Firstly, unlike vast swaths of digital assets that still unfit most regulatory frameworks, security tokens are heavily regulated. Therefore a lack of regulatory overwatch is not a story for any issuer of security tokens, that ultimately became quite unwanted for shady ICO holders.
However, security tokens as well as the other tokens and cryptocurrencies are all running on the blockchain technology that makes them so exquisite. It means that despite the advanced level of credibility, security tokens also possess the features inherited by the blockchain including affordable and fast cross-border transactions.
Considering mentioned benefits of security tokens, it is perfectly clear why this trend is gaining popularity within the crypto-community. Bithumb joined the bandwagon of early adopters seeking to regain the losses.
A Compliant Security Token Exchange
Upon agreement, Bithumb made an undisclosed investment into the South Korean branch of seriesOne, an approved fintech startup that is operating in compliance with the U.S. law.
The seriesOne platform is an experience provider of financial services available for not only traditional market players, but crypto-enthusiasts as well, thus the platform guides startups throughout on the every process of their first initial coin offerings.
The funds contributed by Bithumb are said to be allocated for the development of a compliant exchange with the support for regulated security tokens that is going to operate in the U.S. The two companies are reportedly targeting the first half of 2019 for the launch of the new exchange.
According to the U.S. financial law, establishment of a securities token exchange in the U.S. requires a license from the Securities and Exchange Commission (SEC) and the participation of a technology partner. seriesOne, by the way, is the SEC-accredited firm, which is able to actually launch the security token exchange in the U.S that makes the Bithumb’s choice rather evitable.
seriesOne, in turn, explained the reason behind their partnership with the Korean exchange, citing their belief in the Bithumb know-how to build a tokenized security exchange.
Coinspeaker recently reported the market leader in terms of daily transactions, Bithum was bought by Singapore-based BK Global Consortium, a blockchain investment firm formed by BK Global.
The acquisition is expected to deliver mutual perks for the companies while Bithum itself is bolstering due to the BK Global Consortium blockchain e-commerce settlement system and stable coin operation, which greduce commissions on the existing settlement system.