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The collapse of FTX is sparking second thoughts about plans for the cryptocurrency exchange in Busan

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FTX crash appears to have occurred Not only companies were affected And investors but also entire cities have previously become cryptocurrency exchange partners.

Busan, the second largest city in South Korea, is said to be reconsidering its plans to build a local crypto exchange as a result FTX breakdownLocal news agency Yonhap mentioned On November 23.

The government and financial authorities in Busan are becoming increasingly concerned about the concept of digital exchange between the public and private sectors amid the FTX infection.

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A Busan city official stated, “In view of the various circumstances, it is unreasonable for Busan City to encourage the establishment of digital asset exchanges.”

The South Korean city has been engaged in building a local digital asset exchange for a few months, signing several agreements with cryptocurrency exchanges. It is said that building such a platform as a public-private partnership model was an undertaking of Busan Mayor Park Hyung-joon.

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

Then Busan too Partnership with Huobi Global Cryptocurrency exchange, which contains He had a local office In South Korea since 2019. In October, Busan they expanded Crypto partnerships with Crypto.com exchange.

Previously, Busan too Occurred Memorandum of Understanding with Binance, aimed at the deployment of a regulation-free zone in Busan to promote blockchain initiatives and companies.

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Busan was officially the city selected The state of a regulation-free zone for blockchain technologies in July 2019, and 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, Launch development of a blockchain-based digital currency in collaboration with telecom giant KT in late 2019.

Related: South Korea is investigating cryptocurrency exchanges for listing native tokens

Previously, Busan also participated in cooperation with domestic crypto wallet pioneers such as Hyundai Bay as well as developing Blockchain-enabled virtual power stations.

According to the latest report, Busan City is not giving up on its blockchain goals despite possibly dropping plans for the cryptocurrency exchange.

“Since Busan is designated as a blockchain-regulation-free zone, we will look for various ways to develop Busan into a financial hub by leveraging it,” said a local official.

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