The FTX bankruptcy seems to have affected not only companies and investorsbut also entire cities that had been associated with the cryptocurrency exchange that has been embroiled in problems.
Apparently the second largest city in South Korea, Busan is rethinking its plans to build a local cryptocurrency exchange in the aftermath of the FTX collapsethe local Yonhap news agency reported on November 23.
The Busan government and financial authorities are increasingly concerned about the concept of a Public-private digital exchange amid FTX contagion.
“In view of various conditions, it is unreasonable for the city of Busan to promote the establishment of a digital asset exchangea Busan city official said.
The South Korean city has spent a few months dedicating itself to establishing a local digital asset exchange, signing multiple deals with cryptocurrency exchanges. Building such a platform as a public-private partnership model was reportedly a promise from Busan Mayor Park Hyung-joon.
In August 2022, the Busan City Administration announced a partnership with FTXplanning to build the Busan Digital Asset Exchange as part of the city’s ambitions to become a digital financial center in Asia.
Busan also partnered with cryptocurrency exchange Huobi Global at the time.which has had a local office in South Korea since 2019. In October, Busan expanded its crypto partnerships with exchange Crypto.com.
Previously, Busan also signed an MoU with Binancewith the aim of rolling out the Busan Blockchain Regulation-Free Zone to promote blockchain initiatives and businesses.
The city of Busan was officially designated as a regulation-free zone for blockchain technologies in July 2019., planning to adopt various blockchain applications in industries such as tourism, finance, logistics, and public safety. The local government has been actively pursuing its blockchain plans ever since, launching the development of a blockchain-based digital currency in collaboration with telecom giant KT in late 2019.
Previously, Busan was also involved in a cooperation with local crypto wallet pioneers like Hyundai Payas well as developing blockchain-enabled virtual power plants.
According to the latest report, Busan City Doesn’t Give Up on Its Blockchain-Related Goals despite possibly abandoning his cryptocurrency exchange plans.
“Since Busan has been designated as a blockchain regulation-free zone, we will look into various ways to develop Busan into a financial center using it.“said a local official.
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