In less than seven days, the crypto exchange FTX’s collapse caused substantial ripple effects across the industry. More firms are likely to shut down following this FTX crash, and it may take time before the crypto market recovers.
The city of Busan in South Korea is the latest to have been affected by the FTX contagion. South Korea’s second-biggest city started a blockchain-related program more than three years ago.
However, the recent FTX hack has left the city’s blockchain infrastructure in disarray. Many of its nodes have gone offline, causing significant disruptions in the city’s ability to process transactions.
Hence, many of its residents can no longer access their funds. However, the city announced that it is working on getting its blockchain infrastructure back and running no matter how long it takes.
Busan And Blockchain Technology
The city of Busan had agreed on a deal with FTX to bolster its blockchain development by establishing a local crypto exchange. However, due to FTX’s recent bankruptcy, the city’s authorities are now reconsidering the partnership.
A city executive member explained that it wouldn’t be wise for the city to proceed with its crypto exchange plans based on recent happenings. Busan has been trying to own a local cryptocurrency exchange since Q1 2022.
It has even embarked on numerous agreements with crypto exchanges such as Binance. The idea to own a crypto exchange came from the Mayor of Busan, who wants the city to be less reliant on tourism.
The mayor also saw the move as a way to embrace innovative technologies. However, the city official stated that the current crypto market conditions are not conducive to establishing a successful exchange.
Thus, it would be better to wait for a more favorable market. Three years ago, Busan became a zone free from regulations regarding blockchain technologies.
Later that year, the city started developing a blockchain-related virtual asset program following a collaboration with telecom giants, KT. Despite recent events in the crypto market, Busan still intends to pursue its blockchain ambitions.
Busan is still committed to becoming a significant player in the blockchain space. As a zone not subject to crypto regulations, the city has the potential to become a central hub for blockchain and digital assets worldwide.
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