After FTX's collapse, the authorities in Busan are cutting their ties with global crypto exchanges.
The South Korean city of Busan continues to work on establishing a local digital asset exchange. However, it seems that the authorities have ditched their plans to include global crypto exchanges in this process.
According to the press release shared on December 19th, Busan is launching a management committee that includes 18 local blockchain experts. The committee did not incorporate a single representative from global crypto exchanges.
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Earlier this year, Busan signed agreements with Binance, FTX, Huobi Global, Gate.io and Crypto.com to assist the city in establishing its digital asset exchange. A person familiar with the matter revealed that FTX's collapse influenced the decision to exclude global crypto exchanges.
The problems with FTX and other major global exchanges seem to have influenced <the decision>.
In the press release, the authorities of the city of Busan stated that the committee is set to function as “an advisory body for municipal administration.” Moreover, the committee will be consulting on the establishment and operations of the Busan Exchange.
When commenting on the matter, the Mayor of Busan, Park Hyung-Joon, stated that growing the city's blockchain industry and establishing a digital asset exchange are crucial steps in making Busan a “digital financial centre.” Nevertheless, the Mayor addressed the committee by noting:
Based on the various experiences and expertise of the members of the promotion committee, I ask that you put your heads together and think about the establishment and policy direction of the Busan Exchange, the future food of Busan.
At the end of November, the news broke that due to FTX’s collapse, Busan is reconsidering its plans to establish a digital asset exchange. At that time, the city’s authorities claimed that it was “unreasonable” for Busan to “promote the establishment” of crypto exchange.
