Crypto

Busan City Removes Global Crypto Exchanges From Its Digital Exchange Plans

Busan, the blockchain city of South Korea, has come close to forming a local crypto exchange, but it has ditched most of the global centralized exchange partners. The sweeping move comes in the wake of the recent colossal failure of centralized exchanges.

The city announcement the steering committee made up of 18 local blockchain experts, but none of the five exchanges that agreed earlier this year to help the city establish its first official digital asset exchange. The five exchanges included Binance, Crypto.com, Gate.io, Houbi Global and FTX.

The Steering Committee is a municipal advisory body responsible for providing advice on the establishment and operation of the digital asset exchange, as well as strengthening the external cooperation system.

The possible elimination of global crypto exchanges from the Busan city plan was visible following the collapse of FTX. The municipal administration was having doubts on including these private exchanges in their plans, but were confident to move forward with their blockchain goals without needing third-party assistance.

One of the committee members noted that issues with crypto exchanges such as “FTX and other major global exchanges seem to have influenced [the decision]Another member said the swaps were never part of the city’s plan and were only needed to provide initial cash.

Related: South Korea’s largest telecom company issues blockchain-based local currency in Busan

The city of Busan intends to establish a stock exchange that divides digital assets into securities and non-securities, as well as a market management organization responsible for listing and evaluation, monitoring and supervision. market, as well as deposit and settlement. After creating an established fund in the first half of the following year, the city decided to recruit members.

In July 2019, the city of Busan was officially designated as a regulation-free zone for blockchain technologies. The city plans to implement various blockchain applications in sectors such as tourism, finance, logistics, and public safety. Since then, the local government has been actively pursuing its blockchain projects, announcing at the end of 2019 the development of a blockchain-based digital currency in collaboration with telecommunications giant KT.