Bithumb, the leading South Korean crypto exchange, launched a decentralized trading platform DEX. This is probably part of the company's global expansion plan.
The “Free Transaction Fee” customer attraction event will allow users to trade on the platform without paying any commissions until November 15. However, users will still need to pay a commission (Gas) for ethereum transactions. On October 30, the exchange will also distribute 500 ETH (BITFINEX: ETH/USD.BITFINEX) among thousands of traders who must have a trading volume of at least 1 ETH for DENT, INS, POA20, RNT, WTC coins.
The platform uses the ethereum blockchain as a base software in DEX. The exchange implements the ethereum blockchain via One Root Network protocol called “R1”. A comparison of requests is carried out outside the blockchain. The result is a significant increase in the transaction speed. In addition, the Bithumb decentralized platform using the R1 protocol will exchange data about orders with other exchanges, which gives more opportunities for trading and increases the liquidity of assets.
Decentralized exchanges are considered more secure than centralized counterparts because all their assets are stored in smart contracts and managed by users independently. The new platform is designed to become more global and accessible to users and investors from around the world.
In doing so, Bithumb manages the DEX exchange through a branch in Hong Kong due to regulatory restrictions in South Korea. This is partly a result of a hacking attack worth approximately $31 million in cryptocurrency (35 billion South Korean won at that time) stolen from Bithumb this summer. Since then, the regulation of the crypto industry in South Korea began to tighten, and last month it became known that the Bithumb and Coinone exchanges would close fiat’s withdrawal for unverified traders.
The plans for Bithumb to launch DEX became known at the beginning of the month. Then the company representatives said that the platform was facing problems due to the vagueness of market regulation in the country, so it would expand abroad. They also added that the majority of Bithumb users are Koreans, which makes it difficult for the marketplace to compete with other international exchanges.
Earlier, the crypto exchange Binance also announced plans to launch a decentralized exchange. The head of the company, Changpeng Zhao said that the beta launch of the new platform will take place in early 2019.
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