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Source: Сointеlеgrаph

The collapse of FTX seems to have affected not only companies and investors, but also entire cities that previously partnered with the troubled cryptocurrency exchange.

South Korea’s second-largest city, Busan, is reportedly revisiting its plans to set up a local cryptocurrency exchange due to the collapse of FTX, local news agency Yonhap reported Nov. 23.

The Busan government and financial authorities are increasingly concerned about the concept of public-private digital exchange amid the spread of FTX.

“Given the various conditions, it is unreasonable for the City of Busan to promote the creation of a digital asset exchange,” said a Busan City official.

The South Korean city has been building a local digital asset exchange for months now, having signed several agreements with crypto exchanges. It is reported that the creation of such a platform as a model of public-private partnership was the promise of Busan Mayor Park Hyun-joong.

In August 2022, the Busan City Government announced a partnership with FTX, planning to build the Busan Digital Asset Exchange as part of the city’s ambition to become a digital financial hub in Asia.

Busan then also partnered with crypto exchange Huobi Global, which has had a local office in South Korea since 2019. In October, Busan expanded its crypto partnership with the exchange.

Previously, Busan also signed a MoU with Binance to roll out a regulation-free blockchain zone in Busan to promote blockchain initiatives and businesses.

In July 2019, Busan City was officially granted the status of a regulation-free zone for blockchain technologies, and it is planned to introduce various blockchain applications in industries such as tourism, finance, logistics, and public security. Since then, the local government has been actively pursuing its blockchain plans, starting the development of a blockchain-based digital currency in collaboration with telecommunications giant KT in late 2019.

Related: South Korea investigates crypto exchanges to list native tokens

Previously, Busan has also been involved in cooperation with local crypto wallet pioneers such as Hyundai Pay, as well as the development of blockchain-enabled virtual power plants.

According to the latest report, the city of Busan is not giving up on its blockchain goals despite having possibly abandoned its plans for a cryptocurrency exchange.

“Since Busan has been designated as a blockchain regulation free zone, we will look for various ways to turn Busan into a financial center using it,” a local official said.

Source: Сointеlеgrаph

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