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Busan City Pursues Launch of Government-Run Crypto Exchange Platform

Key Takeaways

Busan, South Korea’s second largest city, is working to develop a blockchain-powered digital asset trading platform set for launch before the end of 2023.

Consortium Selected to Operate Platform

Busan has selected the Busan BDX Consortium as the preferred bidder to operate the exchange. The consortium comprises 11 firms including IT companies, financial institutions, and local Busan businesses. ITcen, a $123 million market cap tech company specializing in infrastructure and IT technology, leads the consortium.

Controversy Over Competitor

The consortium won the bid over competitor WeMade, developers of the WEMIX cryptoasset, amid controversy surrounding WEMIX’s delisting by most major Korean exchanges for token circulation irregularities, though it was later relisted. Local presence in Busan is believed to have favored the winning consortium.

Project Approval and Milestones

The proposal will be put to a vote by the Busan City Council. If approved, an agreement is expected to be signed in January 2023. The operator will manage operations and ownership, funding facility costs. Busan will provide administrative and financial support.

Initially, the exchange will deal with tokenized commodities, IP rights, and carbon tokens due to regulatory hurdles to legalizing security token offerings (STOs).

Need for Competitive Products

Experts say the exchange will need competitive products and large transaction volumes to survive privately owned competition, emphasizing the need for stable technology and appealing products.

For more on this story, see this Korean source.

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