Bithumb terminates brand agreements with 2 overseas-based exchanges
Bithumb, Korea’s leading crypto exchange, is ending its branded agreements with two coin trading platforms operating overseas under its brand name. The move comes as digital asset exchanges in South Korea prepare to comply with the country’s stricter regulations for the industry that will come into effect in September.
Bithumb Global and Bithumb Singapore to Change Brand Name as Bithumb Ends Brand Agreements
Two cryptocurrency exchanges, Bithumb Global and Bithumb Singapore, will not be able to use the brand name and the registered trademark Bithumb from the last day of this month. Bithumb Korea Co., Ltd., operator of South Korea’s leading digital currency platform, ad its decision to terminate the trademark licensing agreements with the two entities.
According to the preliminary notice released this week, the contract termination date has been set for Friday, July 30, 2021. Non-exclusive brand licensing agreements apply to the use of the Bithumb logos and trademark, Bithumb said in the press release. . The Korean company pointed out:
Please note that said exchanges will not use Bithumb’s trademark and registered trademark after the expiration date, and must then use their own trademark and registered trademark.
The South Korean exchange pointed out that the two platforms operate as independent foreign service providers, separate from Bithumb Korea. Bithumb Global and Bithumb Singapore have only borrowed the Bithumb Korea trademark and trademark “to promote their initial business reputation through use of the Bithumb trademark”.
Bithumb is a major digital asset exchange and with a score of 8.1, and it is currently ranks first in South Korea and eighth in the world, according to Coinmarketcap’s Top Cryptocurrency Spot Exchanges list. The platform now has a daily transaction volume of over $ 550 million. Earlier in July, Bithumb Korea banned its employees from trading cryptocurrencies and announced that it would no longer accept registrations from overseas users as of August 13.
Korean crypto exchanges face regulatory challenges
Over the past few months, Korean cryptocurrency exchanges have faced various challenges due to the changing regulatory environment in the country. Changes to South Korea’s special funds law, which took effect this spring, require them to partner with local banks to ensure merchants get accounts in their real names by September 24, when the new rules will be applied.
However, major banking institutions have been reluctant to work with coin trading platforms, fearing that they may be exposed to money laundering, hacking, fraud, and other cryptocurrency risks. Only the four biggest exchanges – Bithumb, Upbit, Coinone and Korbit – have so far managed to establish such cooperation with commercial banks. NH Nonghyup Bank provides services to Bithumb.
Hundreds of smaller exchanges may have to close in September, as Financial Services Commission Chairman Eun Sung-soo warned in April, if they fail to strike a partnership deal with a bank. In the face of tougher regulations ahead, a number of platforms, including Bithumb, have started removing some âhigh-riskâ digital coins and issuing warning lists with others.
What do you think of Bithumb’s decision to end its brand licensing agreements with Bithumb Global and Bithumb Singapore? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.