As South Korea increases their grip on the crypto industry, Bithumb breaks trademark partnerships with two foreign exchanges. They are currently preparing to abide by the stricter laws of the country that will start by September. This move of the company will also put a dent in their revenue as I am pretty sure they made a lot of money from these trademarks. The two companies that will no longer be able to use Bithumb’s name is Bithumb Global and Bithumb Singapore.
Bithumb breaks trademark partnership
.The partnership of Bithumb with these two companies will be terminated on the last day of July. Till then, they will be allowed to operate under the name. The company emphasised the fact that these foreign exchanges won’t be allowed to use their logos and trademark. So, they will now need to work on their own identity to replace Bithumb’s name. The ending of this partnership will also be critical to the foreign exchanges. Bithumb said that the reason they used their trademark was to promote their business initially. Currently, they are the largest crypto exchange in South Korea which makes them quite influential.
Challenges in South Korea
The crypto exchanges in South Korea is facing quite a lot of problems. They have been under constant scrutiny and are finding it difficult to operate in the country. Even banks are not willing to work with them on the allegation that crypto is susceptible to money laundering, fraud, hacking and more. A lot of small exchanges are going to close down in September when the new rules of the government are implemented. And on the other hand, larger exchanges like Bithumb will continue to operate by agreeing to these new laws and restrictions.
What are your thoughts on the increased scrutiny in South Korea as Bithumb breaks trademark partnerships? And do you think these challenges will slowly fade away as crypto becomes more used? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.