The leading Korean crypto exchange Bithumb is terminating its branding agreements with two coin trading platforms operating overseas under its brand name. The move comes as the digital asset exchange in South Korea prepares to meet the country’s stricter regulations for the industry, which will be enforced in September.
Bithumb Global and Bithumb Singapore change their brand names as Bithumb terminates branding agreements
Two cryptocurrency exchanges, Bithumb Global and Bithumb Singapore, will no longer be able to use the brand name and brand Bithumb as of the last day of this month. Bithumb Korea Co., Ltd., operator of the leading South Korean digital currency platform, announced its decision to terminate the trademark license agreements with the two companies.
According to the advance notice published this week, the termination date for the contracts has been set for Friday, July 30th, 2021. The non-exclusive trademark license agreements described in the press release apply to the use of the Bithumb logos and the brand. The Korean company emphasized:
Please note that the named exchanges may no longer use the Bithumb brand and trademark after the expiration date and must use their own brand and trademarks thereafter.
The South Korean stock exchange indicated that the two platforms operated separately from Bithumb Korea as independent foreign service providers. Bithumb Global and Bithumb Singapore only borrowed the Bithumb Korea brand and trademark “to advance their initial business reputation through the use of the Bithumb brand.”
Bithumb is a great exchange for digital assets and with a score of 8.1. It currently ranks first in South Korea and eighth in the world, according to Coinmarketcap’s list of top cryptocurrency spot exchanges. The platform now has a daily trading volume of more than $ 550 million. In early July, Bithumb Korea banned its employees from trading cryptocurrency and announced that it will stop accepting registrations from foreign users as of August 13.
Korean crypto exchanges are facing regulatory challenges
In the past few months, Korean cryptocurrency exchanges have been grappling with various challenges due to the changing regulatory environment in the country. Changes to the South Korean Special Funds Act, which went into effect this spring, require them to work with local banks to ensure that traders are issued real name accounts by September 24th, when the new rules are enforced.
However, leading banking institutions have been reluctant to partner with the coin trading platforms fearing exposure to money laundering, hacking, fraud, and other cryptocurrency-related risks. Only the four largest exchanges – Bithumb, Upbit, Coinone and Korbit – have so far managed to establish such a cooperation with commercial banks. NH Nonghyup Bank provides services to Bithumb.
Hundreds of smaller exchanges may have to close in September if they fail to enter into a partnership agreement with a bank, as Financial Services Commission chair Eun Sung-soo warned in April. To address the upcoming stricter regulations, a number of platforms, including Bithumb, have started removing some “high risk” digital coins and issuing warning lists with others.
What do you think of Bithumb’s decision to terminate its trademark license agreements with Bithumb Global and Bithumb Singapore? Let us know in the comments section below.
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