The largest exchange in South Korea Bithumb announced the release of its own coins with ICO, which it will hold in Singapore. The new coin will be called Bithumb Coin. This was announced by the South Korean newspaper TokenPost.
It may seem strange that Bithumb intends to hold the ICO is not in its native country, however, South Korea has recently prohibited such financial instruments because of their poor controllability.
Regulators say that these types of investments fall under the Law on credit: the government perceives as the ICO loan scheme.
The representative Bithumb said:
The coin is in development at a local branch of the acquired subsidiary Bithumb. Details, such as the timing and volume of production not yet approved.
Offer the cryptocurrency exchanges own coins are not a new phenomenon. Earlier this year the Chinese exchange Huobi Huobi has launched a Token-based ERC20. Binance and Kucoin also issued its own coins.
Coin from Binance (BNB) is one of many examples of how exchange can promote its own cryptocurrency. The site carefully selects promising coins to make matches with BNB, and creating an enhanced infrastructure, thereby increasing its own liquidity. Apparently, Bithumb wants to use this experience.
Ban ICO in South Korea failed to stop the practices of companies that raise funds by this method. To circumvent existing laws, they just announce their projects in other jurisdictions.
For example, the South Korean ICON (ICX) has launched the sale of tokens, in Switzerland, in order to avoid difficulties with the law at home.