“Coming to Russia will create the basis for the synergy of the Russian and South Asian cryptocurrency markets”

The legal status of cryptocurrencies in Russia remains uncertain, but large world cryptocurrency exchanges retain interest in the Russian market. Among them is the South Korean Bithumb.

Why the Russian market is promising for the development of cryptocurrency trading and why Bithumb is not going to conduct IEO, said Javier Sim, co-founder and managing director of Bithumb Global.

– Javier, how do you assess the current situation in the South Korean cryptocurrency market?

– South Korea is one of the largest cryptocurrency trading markets. Although the market has undergone significant turbulence in recent years and continues to change, South Korea remains one of the most significant markets.

One of the key changes in recent years, and last year’s cryptozyme made its contribution, is that investors began to more maturely assess the prospects of this market. They are more cautious in investment decisions and are willing to invest only in worthwhile projects, behind which strong communities stand. Investors in South Korea follow this international trend and also invest only in strong projects. Those that are able to survive any fall in the cryptocurrency market.

– Which local markets do you consider the most promising in terms of global expansion?

– First of all, these are South Asian markets such as Vietnam and Indonesia. In my opinion, these are the most promising local markets in terms of new users. For example, Vietnam, for example, has one of the fastest growing economies in the world. A few years ago, when I was in Vietnam, many residents did not even have smartphones. A lot has changed over the years. The well-being of the inhabitants of these countries has increased significantly, and they are rationally looking for ways to further improve their situation through investment. At the same time, while these growing economies were not so developed that traditional investment tools, such as stocks and other securities, became easily accessible to everyone. To purchase such tools, you need to open special bank accounts, go through strict procedures to confirm sources of income, and so on. If we are talking about small volumes, the meaning in such actions is lost. Cryptocurrencies have one indisputable advantage – a low threshold for entering the market. Therefore, I see great prospects for the development of cryptocurrencies in these countries.

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– Among the plans of Bithumb Global is the launch of the Russian-language version of the platform. What attracts the Russian market?

– The reason why we decided to open the door for Russian users lies in the fact that this is a large, promising market. This is one of the largest countries in terms of economy and other indicators. Russian investors have a very mature approach to investment decisions and show a deep interest in cryptocurrencies. Russian users were among the pioneers in this market.

I consider Russia to be one of the most promising areas, especially when it comes to countries outside the South Asian region. In addition, I highly appreciate the quality of many Russian projects. I want to say that in Russia there are not only highly professional investors, but also high-quality projects that are able to contribute to the development of the entire crypto industry.

I believe that the arrival of Bithumb Global on the Russian market will create the basis for synergy, strengthening mutual ties between Russian and South Asian crypto communities. This will give a certain positive impetus to the entire market.

– What unique services does Bithumb Global offer for traders from Russia?

– The same as for investors from other regions. First of all, Bithumb Global allows you to purchase cryptocurrencies using VISA and MasterCard bank cards. In addition, at Bithumb Global, Russian users will have access to high-quality projects with good liquidity and strong communities.

I plan to tell Russian users more about the capabilities of Bithumb Global during my visit to Moscow and St. Petersburg in mid-October.

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– What documents may users need to work legally?

The exchange provides for three levels of KYC – for comfortable work with a maximum limit on withdrawals of up to 1 BTC, confirmed e-mail and phone are enough. To pass the next level, you must provide 1 identity document and photo. The third level KYC is connected automatically if the trading turnover exceeds 100 BTC.

– Is there any planned legalization of the exchange in Russia (licensing, opening a legal entity, etc.)? Or will it be limited to the Russian interface?

At the moment, we are starting up with the Russian interface, starting up the Russian-speaking support service and opening up support for projects that are interested in listing through our official representative. By the end of the year, we plan to introduce trading pairs with the ruble.

– What steps were taken by the exchange in terms of raising security standards?

– Security is one of the most important fundamental criteria by which traders choose a platform for trading. For Bithumb Global, the security of user assets is a priority. Our team has gained many years of experience in creating and developing security systems for trading and storing crypto assets. We use cold wallets for storage, and the architecture of our wallet meets the highest standards of quality and security. We are constantly updating our systems in response to emerging threats.

– How do you decide which new coins to include in the listing and which not?

– First of all, we look at the fundamental indicators of the project: how much it can be in demand in the world, who will trade this coin, who will consider this asset as a long-term investment, what liquidity this asset has. It is very important how this project is global and not focused on one local market. A coin that wants to be listed must have a real market price. That is, in short.

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– One of the unique tools of Bithumb Global is Staging. What is it and how does it work?

Staging is a tool used to introduce investors to a new coin. It allows projects to attract the attention of investors. Investors are also rewarded for using this tool. It works as follows: the user can transfer funds to our special wallet that are frozen. So he declares his interest in the project and becomes a participant in a kind of raffle. After defrosting, he can take his assets and get a win – the token of a new project. And all this without any commission.

Staging helps us, as a stock exchange, encourage the creation of new projects and promotes the development of the industry. Projects are given the opportunity to loudly declare themselves to investors, attract their attention and build a strong community.

– Why didn’t Bithumb follow many other exchanges and start IEO?

– We are extremely negative about such a crowdfunding mechanism as IEO. Exchanges should not do this. IEO usually conducts young projects that are looking for financing in the market. And most often it happens that after listing and the start of trading, the rate of a new coin falls, and it is trading much lower than the price at which tokens were sold during IEO. This implies certain reputational risks for the exchange. Bithumb prefers to protect investors from such high-risk investments. Of greater interest to us are projects that show steady growth.