Earlier this week, News1 reported that Bithumb, Korea's largest digital money exchange, will launch an ICO later this year to launch its own release of its own Bithumb Coin. .
Some of the largest multi-billion dollar digital money platforms such as Binance, Kucoin and Huobi have released their own tokens that can be used to trade and pay. For example, on Binance, users will pay a lower transaction fee by using Binance Coin and the company benefits from the funds raised through the ICO. This amount is used to cover operating expenses.
Similar to most large-scale ICOs like Telegram, individual investors will only be allowed to participate in the deal if they participate in a large group together with other individual investors or in partnership with the Institutional investors to buy Bithumb Coin.
Earlier this year, Kakao, South Korea's largest Internet corporation, announced that it would be able to conduct its ICO overseas due to the Korean government's ban on ICO domestically.
Kakao Group is well known for KakaoTalk, KakaoPay, KakaoStock, KakaoTaxi and KakaoStory, which dominate more than 90% of the industry, including messaging, stock brokerage, rail-hailing. the car arrives, like uber and grab) and social media.
Kakao suggested that they be able to move their blockchain business to Switzerland to become a separate company with Kakao and simply manage it as a subsidiary. Kakao's potential ICO and blockchain joint venture is expected to cost billions of dollars and the relocation of Kakao's blockchain to areas such as Switzerland will have a negative impact on the blockchain industry in Korea.
In an interview with News1, Bithumb revealed that Bithumb Coin would be released in two or two categories but the company did not disclose any details about the structure or purpose of the token. More importantly, Bithumb says they are not publicly known token sellers that target institutional investors and large-scale investment companies.
A source told The Korea Times:
"Financial authorities have discussed with the tax authorities, the Department of Justice, and other relevant government offices about plans to allow ICO in Korea when certain conditions are met."
Another source added that the government is primarily concerned with the tax aspects of selling tokens, and as soon as this issue is resolved, domestic ICOs will be legalized:
"Different scenarios such as value added tax, capital surplus or transactional tax; And corporate taxation from pre-encoded local exchanges, as well as the start of requiring businesses to register for licenses, is under discussion. "
Bithumb is a public company run by BTCKorea and the company is required to provide all of Bithumb's income, assets, and debt portfolio and its subsidiaries. Implementing an ICO may become more complex for Bithumb and the company will not disclose any further information about its ICO until Bithumb itself is ready to do the sale of the same token. .