According to the allegations, the world-famous Chinese cryptocurrency exchange Huobi is considering buying Bithumb, South Korea’s largest cryptocurrency platform.
According to a report published in The Bell Korea, an anonymous source stated that Huobi is “interested” in purchasing the shares of its parent company, Bithumb Holdings.
As previously reported, Bithumb Holdings recently launched its shares and is actively looking for a buyer. In September, broker Samjong KPMG told Cryptonews.com that it represented the holding, and it was not short of interest. Bithumb Holdings currently owns more than 70% of Bithumb and is looking for a different way out after a takeover deal settled in September last year. Back then, “American and Chinese” firms were cited as potential buyers by industry experts. Bell’s source claims that “Bithumb Holdings is working to sell all of its shareholders’ shares.”
Government Regulations May Have Enforced
Again, the same source claims that future government regulations may have forced Huobi’s hand. The firm currently operates the Huobi Korea trading platform, but currently cannot offer verified banking services. In accordance with the new legislation that entered into force in March 2021, existing real-name banking services directives will become mandatory and leave the fate of many exchanges in the hands of banks. This can cause many exchanges to shut down that are currently unable to provide such services.
In South Korea, currently, only the traditional “four big” cryptocurrency exchanges – Bitumb, Upbit, Korbit, and Coinone – use real-name banking systems.
Huobi Can Get Rid of Obstacles That Way
The anonymous source claimed that Huobi was trying to resolve the real name issue through the proposed takeover deal. The agreement could potentially allow Huobi Korea to merge with Bithumb or allow Huobi to continue trading under the banner of Bithumb. The source used the following statements:
“Huobi, urgently trying to secure real-name banking services, seems to be trying to resolve its concerns by purchasing Bithumb.”