As a direct result of the recent failure of FTX, which was one of the city’s most significant exchange partners, the management of Busan city has rethought its plans to onboard third-party cryptocurrency exchanges.
Despite the fact that it has severed ties with the vast majority of the worldwide centralized exchange partners, the city of Busan, which is known as the blockchain capital of South Korea, has moved one step closer to establishing a local cryptocurrency exchange. Busan is known as the capital of blockchain technology in South Korea.
In light of the recent catastrophic failure of centralized exchanges, the momentous decision was made.
The city has made an announcement that it will be establishing a steering committee that will consist of 18 local blockchain professionals; however, none of the five exchanges that had previously promised to assist the city in building its first official digital asset exchange have been included in the announcement. The city will be building its first official digital asset exchange.
In the wake of the incident that occurred at FTX, it became abundantly clear that the city of Busan may remove provisions from its master plan that allow for worldwide cryptocurrency exchanges.
The municipal administration was having second thoughts about including such private exchanges in their plans, but they were confident that they would be able to continue with their blockchain goals even without the support of a third party.
The city of Busan intends to launch a digital asset exchange that will classify digital assets as either securities or non-securities, as well as a market management organization that will be responsible for listing and evaluation, market monitoring and supervision, as well as deposit and settlement.
The month of July 2019 marked the official beginning of Busan City’s status as a regulatory-free zone for blockchain technology.The city has the intention of implementing a wide range of blockchain applications across a variety of industries, such as, but not limited to, the tourism industry, banking, the logistics industry, and public safety.
Since then, the local administration has been working hard to realize its blockchain goals, and toward the end of 2019, it made the announcement that it will be developing a digital currency based on blockchain technology in collaboration with the telecommunications company KT.