Yonhap reported on Nov. 23 that South Korea’s second-largest city, Busan, has re-examined its plans to build a local crypto exchange after FTX collapsed.
Planning to build Busan Digital Asset Exchange
In the wake of the FTX contagion, the government and financial authorities of Busan are increasingly concerned about the notion of a public-private digital exchange.
“In view of various conditions, it is unreasonable for the city of Busan to promote the establishment of a digital asset exchange,” said a Busan City Official.
It was announced by the Busan City Administration in August 2022 that it was teaming up with FTX to build the Busan Digital Asset Exchange as part of its plan to become an Asian financial hub.
Busan City became a blockchain regulation-free zone in July 2019, planning to implement blockchain technologies in industries such as tourism, finance, logistics, and public safety.
Partnering with some crypto industry
The South Korean city has been working on establishing a local digital asset exchange for several months, signing several agreements with crypto exchanges, and establishing such a platform on a public-private partnership model was according to Busan Mayor Park Hyung-joon’s pledge.
After partnering with Huobi Global, which has a local office in South Korea since 2019, Busan also extended its crypto partnerships with Crypto.com in October.In August, the city partnered with Binance to develop the Busan Digital Asset Exchange, which aims to promote blockchain infrastructure in the city. A digital asset exchange is being developed in Busan, with plans to go live in 2027.
“Through our industry-leading position and technological expertise, combined with the City of Busan’s strong support for the blockchain industry, we hope to help grow crypto adoption within the city and beyond,” said Binance CEO, Changpeng Zhao.