South Korea’s Bithumb exchange, one of the world’s largest crypto markets, has launched its decentralized exchange Bithumb DEX in Hong Kong by implementing the Ethereum blockchain. The platform, went live on Monday several days after BK Global Consortium acquired the majority stake in Bithumb.
The new DEX utilizes Ethereum blockchain as an underlying software, and therefore the trading venue will only list coins based on that distributed ledger technology (DLT). Dent (DENT), aelf (ELF), One Root Network (RNT), POA20 (POA), and Ziliq (ZIL) are among the cryptos that the platform currently supports. Bithumb DEX groups all coins in pairs with ETH.
The decentralized exchange implements Ethereum blockchain through R1, a protocol of One Root Project. Currently, Rootrex DEX also uses R1, but the exchange is temporarily closed because “strategic partners are accessing R1 protocol and Rootrex,” according to the platform website.
Commenting on the Bithumb DEX launch, One Root Project explained in a blog post on Monday.
“As an efficient decentralized Token exchange protocol, R1 protocol innovatively separates matching and settlement of orders, enabling order matching to be done off the chain. As a result, there’s a significant increase in transaction speed and Bithumb users can enjoy trading experiences comparable with those of centralized exchanges.
Bithumb DEX shares order data and liquidity with all R1-based exchanges, providing users with better trading depth and higher asset liquidity.”
Bithumb manages the DEX exchange through a Hong Kong subsidiary due to the regulatory scrutiny in South Korea. However, earlier this week, the Hong Kong Securities and Futures Commission revealed a plan for crypto trading regulation.
“Bithumb DEX was launched by Hong Kong-based Blockchain & Fintech BGEX Ltd,” the exchange explained in its statement.
Bithumb, which lost more than $32 million in a hack attack in June, continues to be one of the largest players in the cryptocurrency industry. The platform clocked $838 million in trading volume for the last 24 hours to 10:54 UTC on Tuesday. Bithumb’s move to the decentralized trading comes ahead of the same plan by one of its main competitor, Binance.