By George Ward
The demise of the cryptocurrency exchange FTX has significantly impacted the entire crypto industry. As a result, Busan, South Korea’s blockchain capital, recently announced modifications to plans to establish global cryptocurrency exchanges.
The cryptocurrency exchange FTX was one of Busan city’s crucial partners. However, in the wake of its shocking failure, Busan is now rethinking its intentions for integrating third-party exchanges.
South Korea Panel Decision On Crypto Exchanges
Meanwhile, a steering committee, which functions as a municipal advisory body, is in charge of providing recommendations regarding the creation and administration of the cryptocurrency exchange. Additionally, they are in charge of improving the system with outside assistance. Busan City’s most recent development comes as opposition to centralized exchanges intensifies.
Busan city made this decision in response to the collapse of the cryptocurrency exchange FTX last month. Hence, the local authorities are debating whether or not to include such crypto exchanges in their plans.
One of the panelists claimed that the problems with “FTX and the lack of trust in other top global exchanges influenced the city’s decision.” However, a different panelist claimed that the exchanges were never essential to the city’s agenda.
Advancing Its Own Blockchain Goals
Busan city feels confident in advancing its blockchain goals without external assistance. It plans to build a local crypto exchange where crypto transactions are possible, whether they are securities or commodities.
The exchange plans to act as a market administration body, including listing and evaluating crypto assets, market monitoring, oversight functions, and deposit and settlement. Park Hyung-Joon, the mayor of Busan, commented that building a digital asset exchange and supporting the blockchain industry is essential as Busan transforms into a major financial center.
He further said, “I request that you pool your thoughts and evaluate the establishment and policy direction of the Busan Exchange, the future staple of Busan.”
In Busan City, blockchain technology is permitted to function unrestrictedly. As a result, blockchain technology will be used in the city for various purposes, including finance, tourism, public safety, and logistics. Since then, the regional government has vigorously pursued its blockchain ambitions.
In July 2019, Busan City obtained formal registration as a zone with no regulations for blockchain technologies. As a result, the city will use numerous blockchain applications in various sectors, such as public safety, logistics, tourism, and banking.