South Korea has been known as one of the most technically advanced nations and has also been progressive towards Web3 and metaverse. It has also been speedily working on its crypto regulation, and recent news cites its further advancement in the crypto sector.
Busan, the blockchain city of South Korea, has inched closer to developing a local crypto exchange. However, it has dropped most of the global centralized exchange partners in a sudden turn of events.
In an official announcement, the city announced a steering committee consisting of 18 blockchain experts but none of the five exchanges were reported earlier in its plan. Instead, the exchanges had agreed to assist the city in establishing its first digital asset exchange. The five exchanges were FTX, Huobi Global, Crypto.com, Binance, and Gate.io.
As per the sources, the steering committee is an official advisory body authorized with the responsibility of providing advice on establishing and operating the digital asset exchange and strengthening the system of external cooperation.
The announcement comes in response to the recent failures of centralized exchanges in the crypto sector. Given the series of happenings, it is anticipated that the collapse of the FTX exchange led to the Busan authorities’ elimination of the centralized exchanges from the plan.
Sources reveal that the city administration had doubts about including the private exchanges but allowed it because of their blockchain goals without needing third-party assistance.
One of the committee members said that the problems with the crypto exchanges, such as “FTX and other major global exchanges, seem to have influenced (the decision).” Another member noted that the exchanges were never looked up as an integral part of the plan and were only there to offer initial liquidity.
Busan intends to establish an exchange that divides digital assets into securities and non-securities. It can also serve as a market management organization responsible for listing and evaluating, monitoring supervision, and deposit and settlement. It decided to recruit new members after creating an established fund for the first half of the coming year.
In July 2019, Busan was officially announced as a regulatory-free zone for blockchain technologies. As a result, the city plans to integrate blockchain-embedded applications into various industries like tourism, finance, logistics, and public safety.
Since 2019, the government has been actively pursuing its blockchain plans, including its blockchain-based digital currency.
In October this year, Todayq News reported that South Korea is expected to use blockchain-technology-based digital identification (ID) instead of physical cards for its citizens by 2024.
However, Busan City is not the only one developing an exchange. The Russian parliament has been making amendments to accommodate a national crypto exchange.