FTX debacle sparks rethink of Busan city crypto exchange plans

FTX crashes seem to have It’s not just businesses that are affected and investors, and an entire city that was previously a partner of the troubled cryptocurrency exchange.

South Korea’s second-largest city, Busan, is reportedly reconsidering its plans to establish a local cryptocurrency exchange because FTX Crashlocal news agency yonhap Report November 23.

Amid the spread of FTX, the Busan government and financial authorities are increasingly paying attention to the concept of a public-private digital exchange.

“Given various circumstances, it is unreasonable for Busan City to promote the establishment of a digital asset exchange,” a Busan city official reportedly said.

The South Korean city has been working on establishing a local digital asset exchange for several months, signing several agreements with cryptocurrency exchanges. According to reports, Busan Mayor Park Hyung-joon promised to build such a public-private partnership platform.

August 2022, City Hall Busan Announces Partnership with FTXplans to build the Busan Digital Asset Exchange as part of the city’s ambition to become Asia’s digital financial hub.

Busan Naya Cooperate with Huobi Global cryptocurrency exchange, which has have a local office In South Korea since 2019. October, Busan extend Its crypto partnership with Crypto.com Exchange.

Previously, Busan had sign Memorandum of Understanding with Binance to deploy Busan’s Blockchain Free Regulatory Zone to facilitate blockchain initiatives and businesses.

Busan City officially established Specified It became a blockchain technology free zone in July 2019, and plans to adopt various blockchain applications in industries such as tourism, finance, logistics, and public safety. The local government has been aggressively pursuing its blockchain initiative since then, start development At the end of 2019, it cooperated with the telecom giant KT to develop a blockchain-based digital currency.

related: South Korea Investigates Crypto Exchanges to List Local Coins

Previously, Busan has also partnered with local crypto wallet pioneers such as modern payment and development Blockchain-enabled virtual power plant.

According to a new report, the city of Busan has not given up on its blockchain goals despite potentially abandoning its crypto exchange plans.

“Since Busan has been designated as a blockchain free zone, we will seek various ways to use it to develop Busan into a financial center,” a local official reportedly said.