Busan Reassess its Plans to Launch Digital Asset Exchange

Following the collapse of cryptocurrency exchange FTX, authorities in Busan are reevaluating their plans to launch a digital asset exchange.

The city of Busan, a large port city and the second-largest city in South Korea, is reportedly reconsidering its plans to establish a cryptocurrency exchange.

According to the news report shared by the local news portal Yonhap, the local government and financial authorities are having doubts due to the collapse of FTX, which was one of its partners in the crypto exchange establishment project.

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The authorities in the city of Busan are reportedly concerned about establishing a public-private digital exchange.

When talking with local news portal Yonhap, the official from Busan City states that at this time, it is “unreasonable” for the city to “promote the establishment” of crypto exchange.

In view of various conditions, it is unreasonable for the city of Busan to promote the establishment of a digital asset exchange. Since Busan has been designated as a block chain regulation-free zone, we will seek various ways to develop Busan into a financial center by utilizing it.

At the end of August, Busan Metropolitan City partnered with Bahamas-based crypto exchange FTX to help the city to expand its blockchain industry. In the partnership, FTX would have helped Busan to establish its digital asset exchange, promote blockchain education, open its offices in the city and promote various projects in the Busan Blockchain Free Regulation Zone.

During the year, Busan also announced its partnership with Gate.io, Huobi Global, and Crypto.com to assist the city in establishing the digital asset exchange.

On top of that, at the end of August, crypto exchange Binance signed a Memorandum of Understanding (MoU) with Busan, committing to provide technological and infrastructural support to the city, as well as promoting its digital asset exchange.

It is worth noting that the city of Busan received a status of a regulation-free zone for blockchain technologies in July 2019. 

by Gile K. – Crypto Analyst, BitDegree