Blockchain Exchange Alliance (BXA) is acquiring a major stake of 51% in the South Korean Exchange Bithumb along with five other stakeholders from the US, Japan, Hong Kong, Middle East, and the United Kingdom.
BXA is formerly known as BTHMB HOLDINGS led by Dr. Byung Gun Kim. The Singapore-based crypto trading firm aspires to strengthen the crypto exchange industry by the key partnership and global acquisition. It is the biggest exchange in trading volume which includes fiat-to-crypto processes.
According to Kim, BXA receives a letter of intent from a top US cybersecurity firm. It is one of the of six new shareholders that would operate with Bithumb and the coalition to boost their security. The South Korean crypto exchange has 4.5 million users around the world but was hit with security breaches. Last year in June, around $31 million was stolen and another instance of stolen data files of 30,000 customers.
Kim noted, “We have been working on improving our security system. As we are building out a global network of exchanges, cybersecurity and the safekeeping of our clients’ cryptocurrency assets have assumed greater importance.”
He added that for the past three months, they have been consulting with their consortium shareholders regarding how to deploy Bithumb and BXA for their global development.
The agreement, however, is not yet complete but BXA’s enthusiasm will launch another yet transaction including Bithumb following the $330 million investment. The association still needs to shell out a concluding amount of $250 million to dealing shareholder BTC Korea. The completion of the deal is expected in February.
California-based company, Blockchain Industries had issued a letter of intent for merging with BTHMB Holdings which will be replaced by BXA after the finalization of the coalition’s acquisition of the governing stake in Bithumb. It aims to achieve the reverse merger by March 1. Securing a large majority of Blockchain Industries’ chief shares, BXA will receive over-the-counter listing standing.
The exchanges will be for cryptocurrencies as well as security tokens. It will be based in Australia, Canada, Hong Kong, Japan, Mexico, Peru, Singapore, South Korea, Thailand, the UK, and the US. It has three levels of association for exchanges that join the consortium namely; acquisition, white label licensee, or participant member.
Blockchain Industries noted in a US filing that BXA has plans to make the merger entity for its business expansion in America. The California-based firm with only six employees disclosed revenue of just $1.5 million for the 2018 financial year.