Binance is not a part of Busan city’s digital exchange plans. The blockchain capital of South Korea, Busan, has dropped the majority of its global centralized exchange partners but has made progress toward establishing a local cryptocurrency exchange. Extreme action was taken in response to the recent catastrophic failure of centralized exchanges.
The steering committee declaration, which was made by the city and included 18 local blockchain experts, did not mention any of the five exchanges that had agreed earlier this year to assist the city in creating its first official digital asset exchange. The five exchanges include Binance, Gate.io, Crypto.com, Huobi Global, and FTX.
A steering committee is a group of municipal advisors tasked with formulating suggestions for improving the system of external cooperation and developing and managing the digital asset exchange.
The elimination of exchanges including Binance could be due to FTX’s fall
In the wake of FTX’s collapse, it was evident that the city of Busan may be planning to exclude international cryptocurrency exchanges including Binance. The city administration had second thoughts about including such private exchanges in their plans, but they were confident that they could advance their blockchain objectives without outside help.
The issues with cryptocurrency exchanges like “FTX and other major global exchanges including Binance seem to have influenced [the decision],” according to one committee member. Another participant claimed that the exchanges were only necessary for providing initial liquidity and were never a crucial component of the city’s plan.
Busan City plans to create a market management institution in charge of listing and evaluation, market monitoring and supervision, and deposit and settlement, as well as an exchange that categorizes digital assets as securities and non-securities. The city decided to enlist members after establishing a fund in the first half of the following year.
In July 2019, Busan City received formal recognition as a zone with no regulations for blockchain technologies. Numerous blockchain applications will be used by the city in public safety, logistics, tourism, and finance. The local government has been actively pursuing its blockchain plans ever since. In late 2019, it announced a collaboration with telecom giant KT to create a blockchain-based digital currency.