The FTX debacle appears to have affected not only the company and investors, but the entire city that was previously a partner of the struggling cryptocurrency exchange.
South Korea’s second-largest city, Busan, is reconsidering its plans to establish a local cryptocurrency exchange following the FTX debacle, local news agency Yonhap reported. 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.
In August 2022, the Busan city government announced a partnership with FTX to build the Busan Digital Asset Exchange as part of the city’s ambition to become Asia’s digital financial hub.
Busan then also partnered with the Huobi global cryptocurrency exchange, which has had 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. Since then, the local government has been aggressively pursuing its blockchain initiatives, launching the development of a blockchain-based digital currency in late 2019 in partnership with telecommunications giant KT.
related: South Korea Investigates Crypto Exchanges to List Local Coins
Previously, Busan has also been involved in collaborations with local crypto wallet pioneers such as Hyundai Pay, as well as the development of blockchain-enabled virtual power plants.
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.