According to recent reports, Chinese crypto exchange Huobi is eyeing to take over South Korean crypto exchange BitHumb. Shareholders in Bithumb are reportedly open to the idea, which would see Huobi carrying on the business of Bithumb in South Korea after the implementation of new digital currency laws in the country. This will require the crypto exchange to obtain real name confirmation accounts, which would enable the firm to conduct business in South Korea.
Huobi eyes to expand business in South Korea.
Currently, only four firms have the required compliance rules to operate in South Korea, namely Bithumb, Upbit, Coinone, and Kobit. Reports surfaced back in September that Bithumb is looking to be acquired for somewhere between KRW500 billion (US$430 million) and KRW700 billion (US$604 million) amid the ongoing fraud investigations into the company. Huobi’s operations remain largely in China, with most of its senior executives living there. Since the crypto exchange announced it was withdrawing from the U.S. market back in November 2019, the company has set its sights on South Korea and Japan, aiming to become a significant player in the region.
Chinese crypto exchange has also been reportedly interested in acquiring Bitflyer.
Huobi crypto exchange has also been reportedly interested in acquiring Bitflyer, the largest cryptocurrency exchange in Japan, with over 2.5 million active users. According to global transaction volume in crypto exchanges, Huobi is currently 7th, with Bithumb 12th and Bitflyer 19th, respectively. The moves come after strong trading at Huobi, which the company has attributed to strength in contract derivatives and its other businesses. With several targets now in its sights, it is clear that the Chinese crypto exchange is eyeing acquisitions to take the group to the next level.