The Busan city administration has signed agreements with multiple crypto firms, including Binance, Huobi Global, Crypto.com, as well as the troubled FTX exchange.
The FTX crash appears to have affected not only companies and investors but also entire cities that previously became partners of the troubled cryptocurrency exchange.
South Korea’s second-largest city, Busan, is reportedly reconsidering its plans to build a local crypto exchange as a consequence of the FTX collapse.
The government and financial authorities of Busan have become increasingly concerned about the concept of a public-private digital exchange amid the FTX contagion.
In August 2022, the city administration of Busan announced a partnership with FTX, planning to build the Busan Digital Asset Exchange as part of the city’s ambitions to become a digital financial hub in Asia.
Busan then also partnered with Huobi Global crypto exchange, which has had a local office in South Korea since 2019. In October, Busan extended its crypto partnerships with the Crypto.com exchange.
Busan City has officially designated the status a regulation-free zone for blockchain technologies in July 2019, planning to adopt various blockchain applications in industries like tourism, finance, logistics, and public safety.
Busan City doesn’t give up on its blockchain goals despite possibly dropping its crypto exchange plans.