FTX Crash Triggers Second Thoughts On Busan City’s Crypto Exchange Plans

FTX crash appears to have impacted not only businesses and investors but also entire cities that had previously partnered with the troubled crypto exchange.

iexclusivenews reports that as a result of the FTX collapse, South Korea’s second-largest city, Busan, is reportedly reconsidering its plans to build a local crypto exchange, according to the local news agency Yonhap on Nov. 23.

This online outlet understands that amid the FTX contagion. The Busan government and financial authorities have grown increasingly concerned about the concept of a public-private digital exchange.

“Given various conditions, it is unreasonable for the city of Busan to promote the establishment of a digital asset exchange,” a Busan City official reportedly stated.

For several months, the South Korean city has been working to establish a local digital asset exchange, signing multiple agreements with cryptocurrency exchanges.

Busan Mayor Park Hyung-Joon reportedly pledged to build such a platform as a public-private partnership model.

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

However iexclusivenews Nigeria reports that Busan then collaborated with Huobi Global, a cryptocurrency exchange that has had a South Korean office since 2019. Busan expanded its crypto partnerships with the Crypto.com exchange in October.

Busan previously signed a memorandum of understanding with Binance, to deploy Busan’s blockchain regulatory-free zone to promote blockchain initiatives and businesses.

In July 2019, Busan City was officially designated as a regulatory-free zone for blockchain technologies.

With 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 blockchain plans, announcing in late 2019 the development of a blockchain-based digital currency in collaboration with telecom giant KT.

Previously, Busan collaborated with local crypto wallet pioneers such as Hyundai Pay, as well as developing blockchain-enabled virtual power plants.

According to the most recent report, despite the possibility of abandoning its crypto exchange plans, Busan City remains committed to its blockchain goals.

A local official reportedly stated; “Since Busan has been designated as a blockchain regulation-free zone, we will seek various ways to develop Busan into a financial center by utilizing it.”