The city of Busan in South Korea has made public the specifics of its ambition to become the first location anywhere in the world to open and run a cryptocurrency exchange. The municipality has expressed the expectation that it would have its first clients for crypto-trading by the end of 2023.
In July of 2019, the city was given a unique status, and it became a blockchain zone free from any regulations. Nonetheless, up until fairly recently, this has not resulted in much in the way of fruit, since the majority of municipal efforts have concentrated on private blockchain systems.
This was mostly the result of the former president’s cautious approach to anything and everything linked to cryptocurrencies. The core tenet of this position was the contentious assertion that blockchain technology and cryptocurrency regulation need to be seen as two distinct issues.
In the election that took place in this year, President Yoon Seok-yul was elected on on a platform that promised a more liberal and pro-business attitude to the growth of crypto. In particular, Yoon made a commitment to strengthen Busan’s credentials in the blockchain space.
In response, Busan made the announcement that it would be establishing what it is now calling the Busan Digital Asset Exchange. The prospective exchange has been described as an organization that would “list and trade virtual currencies” in previous statements.
Maeil Kyungjae reported that Busan has pledged to launch its exchange “next year” and has laid out a roadmap for its projected progress.
How the City of Busan Is Going to Launch Its Own Cryptocurrency Exchange ???
The municipality said that it would form a “promotion committee” to manage the launch and ensure its success. The group will be made up of 15 knowledgeable individuals from from the academic community and the crypto sector.
In addition, Busan said that it will create a “holding company” for the exchange in the first half of the next year, followed by three “market management organizations” in the second half of 2023. It was said that “by the end of the next year” their objective was to have the exchange fully operational.
In addition, the exchange is planning to establish three crypto-related companies in the next year. However, despite the fact that the city will continue to make all of the final decisions, it has also looked for “private sector leadership.”
The city will most likely choose a single company to handle assets such as fiat and cryptoassets, and it will listen to offers from well-established participants in the industry.
According to the media source, while the city will provide a significant amount of financing, there is a possibility that it may “sell its part” to the private sector “after a specific length of time.”
International cryptocurrency exchange powerhouses such as Binance and Crypto.com have already inked partnership agreements with Busan in the probable hope that this would pave the way for them to enter the high-volume South Korean market. At the moment, only five domestic exchanges have licenses that permit them to provide trading services involving fiat currency and cryptocurrencies.
Compiled by Coinbold