Home CryptocurrencyAltcoin FTX Collapse Triggers More Reflections on Busan City’s Cryptocurrency Plans

FTX Collapse Triggers More Reflections on Busan City’s Cryptocurrency Plans

by SuperiorInvest

FTX seems to have failed affected not only companies and investors, but also entire cities that previously became partners of the troubled cryptocurrency exchange.

South Korea’s second largest city, Busan, is reportedly rethinking its plans to build a local crypto exchange as a result of FTX collapselocal news agency Yonhap reported on November 23.

Busan’s government and financial authorities are increasingly concerned about the concept of a public-private digital exchange amid the FTX contagion.

“Due to various conditions, it is unreasonable for the city of Busan to support the establishment of a digital asset exchange,” a Busan city official reportedly said.

The South Korean city has been working on setting up a local digital asset exchange for several months and has signed several agreements with crypto exchanges. Building such a platform as a public-private partnership model was reportedly a promise by Busan Mayor Park Hyung-joon.

In August 2022, the city management Busan announced a partnership with FTXwhich plans to build the Busan Digital Asset Exchange as part of the city’s ambitions to become Asia’s digital financial hub.

Busan then too cooperates with Huobi Global crypto exchange that has had a local office in South Korea from 2019. Busan in October extended its crypto partnership with the Crypto.com exchange.

Previously also Busan signed a memorandum of understanding with Binance to establish a blockchain-free Busan Zone to support blockchain initiatives and business.

Busan City was officially designated blockchain technology-free zone status in July 2019, which plans to adopt various blockchain applications in industries such as tourism, finance, logistics, and public safety. The local government has been actively pursuing its blockchain plans since the year starting development blockchain-based digital currency in collaboration with telecommunications giant KT in late 2019.

Related: South Korea investigates crypto exchanges for launching native tokens

Previously, Busan was also involved in collaboration with local cryptocurrency pioneers such as Hyundai Pay as well as development virtual power plants with blockchain support.

According to the latest report, Busan City is not giving up on its blockchain goals, although it may drop its plans for a cryptocurrency exchange.

“Since Busan has been designated as a blockchain-free zone, we will be looking for various ways to make Busan a financial center by utilizing it,” a local official was quoted as saying.

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