South Korean Busan Ban Crypto Exchanges
2022.12.20 06:11
South Korean Busan Ban Crypto Exchanges
Budrigannews.com – The blockchain city of Busan in South Korea is getting closer to starting a local cryptocurrency exchange, but most of the global centralized exchange partners have left. Following the massive failure of centralized exchanges in the recent past, the drastic decision was made.
While none of the five exchanges that had agreed earlier this year to assist the city in establishing its first official digital asset exchange were mentioned in the city’s announcement of the steering committee, which included 18 local blockchain experts. Binance, Crypto.com, Gate.io, Huobi Global, and FTX were the five exchanges.
The steering committee is a municipal advisory body with the responsibility of strengthening the system of external cooperation and offering guidance on the establishment and operation of the digital asset exchange.
In the wake of FTX’s collapse, it became evident that global cryptocurrency exchanges might not be included in Busan city’s plan. Although the city administration was unsure whether or not to include such private exchanges in their plans, they were confident that they could achieve their blockchain objectives without the assistance of third parties.
One member of the committee said that the problems with crypto exchanges like “FTX and other major global exchanges seem to have influenced [the decision]” and that the exchanges were only needed to provide initial liquidity and were never a part of the city’s plan.
Busan City intends to establish a market management organization in charge of listing and evaluation, market monitoring and supervision, and deposit and settlement, as well as an exchange that divides digital assets into securities and non-securities. The city decided to recruit members after establishing a fund in the first half of the following year.
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In July 2019, Busan City was officially designated as a blockchain technologies regulatory-free zone. The tourism, finance, logistics, and public safety sectors are among those where the city intends to implement a variety of blockchain applications. Since then, the local government has been working hard on its blockchain plans, announcing in the latter half of 2019 the creation of a digital currency based on blockchain in collaboration with the telecom giant KT.
