The Second Largest City In South Korea Is Making Efforts To Become A Crypto Hub

Key Points:

• Busan, South Korea’s second-largest city, is attempting to establish itself as a crypto center.
• To create the Busan Digital Asset Exchange by the end of this year, the city has signed memorandums of understanding with many of the world’s top cryptocurrency exchanges, including Binance Holdings Ltd.

Busan, South Korea’s second-largest city, is attempting to become a crypto center.

The Korean government has labeled Busan as a “super-aged” city, and municipal authorities hope that cryptocurrency may help turn things around by recruiting young people, tech businesses, and investors. The port city is facing demographic issues since the Korean government has labeled it as a “super-aged” city, which means that more than 20% of its population is 65 or older.

Busan city authorities believe that by accepting cryptocurrencies, the city would be able to attract young people, technological entrepreneurs, and venture capital investment. Park Kwang-hee, chief of the finance and blockchain section of Busan’s metropolitan government, was reported by the magazine as saying: “Younger individuals want to work in sectors such as crypto.”

Despite the bankruptcy of crypto exchange FTX in November of last year, Busan remains dedicated to its goal to become a crypto hub, according to Park. To create the Busan Digital Asset Exchange by the end of this year, the city has signed memorandums of understanding with many of the world’s top cryptocurrency exchanges, including Binance Holdings Ltd. According to Binance, as part of the arrangement, Busan will “get technological and infrastructural support from Binance,” and the two exchanges’ order books would be shared.

Busan Digital Asset Exchange also intends to enter the security token market. The South Korean government is contemplating allowing such tokens to be issued in the future year, overturning its 2017 ban on all initial coin offerings (ICOs). Furthermore, Busan’s goal of becoming a cryptocurrency hub involves luring blockchain startups. In 2019, the city was designated as a regulatory-free zone for blockchain experimentation and company growth. It presently supports six initiatives from 17 different firms. In December of last year, 15 additional blockchain enterprises relocated to the Busan International Finance Center, bringing the total to 29.

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