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Busan drops global cryptocurrency exchanges from its digital exchange plans

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Busan, the South Korean blockchain city, has taken a step closer to forming a home-grown crypto exchange, but has dumped most of its global centralized exchange partners. The drastic decision comes on the heels of the recent massive failure of centralized exchanges.

City announce The steering committee is made up of 18 local blockchain experts but none of the five exchanges agreed earlier this year to help the city create its first official digital asset exchange. The five exchanges included Binance, Crypto.com, Gate.io, and Hobby global f FTX.

The Steering Committee is a municipal advisory body tasked with advising on the establishment and operation of digital asset exchanges, as well as strengthening the external cooperation system.

The possible cancellation of the global cryptocurrency exchange from the Busan city plan was evident in the wake of the FTX collapse. It was the city administration Having second thoughts about including such private exchanges in their plans but were confident of moving forward with their blockchain goals without the need for third party help.

A panel member noted that issues with cryptocurrency exchanges such as “FTX and other major global exchanges appear to have affected [the decision]Another member said that exchanges were never an integral part of the city’s plan and were only needed to provide initial liquidity.

Related: The largest South Korean telecom company issuing a local blockchain-based currency in Busan

Busan City intends to establish an exchange that will divide digital assets into securities and non-securities, as well as a market management organization responsible for listing, valuation, market monitoring and supervision, depository and settlement. After establishing a founder’s fund in the first half of the following year, the city decided to recruit members.

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