Busan City Ends Global Crypto Exchange Partnership After FTX Disaster
South Korea’s booming blockchain city, Busan, is moving away from collaborating with centralized foreign exchanges and building a local crypto exchange for its market. Accordingly, the city has dropped most of its global partners following the spectacular crash of FTX.
Busan Moves Away From Foreign Partners
In a new move, the city of Busan has unveiled a steering committee for its blockchain project, consisting of 18 local experts in the industry and none of the five offshore exchanges that previously agreed to collaborate.
Meanwhile, the five centralized exchanges are Huobi Global, Crypto.com, Gate.io, Binance, and FTX. Moreover, the committee is an advisory body for the municipal city, providing expert advice to the government on establishing and operating a crypto exchange.
It is worth noting that the fall of FTX triggered the new move by the South Korean city as the authorities deliberated on including foreign private exchanges in their initial plan to develop a local blockchain ecosystem.
Ultimately, the FTX fiasco convinced the administrators that they could move forward with their blockchain project without the assistance of a third-party entity.
According to a committee member, the municipal city decided to do away with centralized exchanges like FTX because those global exchanges were never an integral part of the city’s plan and were only included to provide initial liquidity.
Busan City aims to develop an exchange that could classify digital assets into securities and non-securities, along with other market structures.
The Next Asian Crypto Hub
The city of Busan was officially recognized as a regulatory-free zone for blockchain technology in July 2019. As a result, the municipal administrators plan to develop and implement blockchain applications in multiple industries like finance, tourism, logistics, health, etc.
Since then, the city government has been actively pursuing its plans with the announcement of a blockchain-based virtual asset in collaboration with the telecom firm KT in 2019.
The city has been involved in several projects to accelerate its blockchain development initiative. It also partnered with Hyundai Pay, a Korean digital wallet manufacturer. Busan has already developed a blockchain-based virtual power infrastructure.
Busan’s blockchain revolution strategy has been long in the making. Thus, the latest event regarding offshore crypto exchanges will have little impact on its digital economy drive.
The city administrators want to make Busan a blockchain-specific space to attract global attention and boost the city’s local economy. Furthermore, the plan has always been to develop the country’s first digital economy machine, making Busan a virtual finance hub.
Even as the city halted its cooperation with Binance and FTX, decision-makers are confident that they can hold their own without the input of the exchanges.
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