📰 Table Of Contents
Busan’s Blockchain-Powered Digital Assets Exchange Facing Challenges
The South Korean city of Busan had ambitious plans to launch a city-run, blockchain-powered digital assets exchange. However, recent reports suggest that the project is facing significant hurdles.
Launch Delay
Busan’s digital asset exchange plans, which aimed to be the world’s first city-run crypto exchange, have encountered delays. The city’s reliance on changes to central government policies related to Initial Coin Offerings (ICOs) has hindered progress.
- ICOs have been banned in South Korea since 2018.
- Despite promises to review the ban, it remains in place.
Due to regulatory uncertainties and past crypto scandals, Busan has had to adjust its exchange strategy. Initially planning to list various assets, including tokenized real estate and commodities, the city now intends to focus on tokenized precious metals.
Payment Issues
Busan City and the BDX Consortium signed a business agreement to launch the exchange. However, the consortium failed to make a scheduled $7.3 million equity capital payment, breaching the terms of the agreement.
- The consortium’s failure to pay has stalled the establishment of the exchange.
- Despite the missed deadline, Busan has not terminated the agreement, hoping for a resolution.
The consortium, comprising 11 companies, has pledged to make the payment by the end of May. This delay could impact the project timeline, including hiring employees and platform development.
Future Outlook
Busan’s exchange was initially set to launch in 2023 but has faced delays and revisions to its timeline. The city remains optimistic about the project’s future, emphasizing the need for a gradual approach and viewing setbacks as part of the learning process.
While challenges persist, Busan’s foray into blockchain technology represents a pioneering effort in city-led digital asset exchanges.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
