South Korea’s second-largest city aims to become a crypto hub
Busan, South Korea’s second largest city, is trying to become a crypto-hub. The Korean government has designated Busan as a “super-aged city” and officials believe that crypto can help to turn things around by attracting young people and tech startups and investors.
South Korean City Wants To Become A Crypto Hub
Bloomberg reported Monday that Busan, the second-largest city of South Korea, is trying to position itself as a cryptocurrency hub. The Korean government has designated Busan as a “super-aged city”, meaning that more than 20% are 65 years or older. This is causing demographic problems in the port city.
Officials in Busan believe that cryptocurrency can be used to attract young people, venture capitalists, and technology startups.
The publication quoted Park Kwang-hee as saying: “Noting that younger people prefer areas such as crypto to work, the finance and blockchain section at Busan’s metropolitan governments was concerned.”
We felt it was right to concentrate on digital assets and financial products.
Park observed that despite the fall of crypto exchange FTX in November 2013, Busan is still committed to its plans for becoming a crypto hub.
To launch the Busan Digital Asset Exchange, the city has entered into memorandums with Binance Holdings Ltd. and several of the largest cryptocurrency exchanges in the world. Binance stated last August that Busan would receive technological and infrastructure support from Binance. The two exchanges will also share their order books.
Busan Digital Asset Exchange plans to also venture into security tokens. South Korea’s government is looking at allowing the issuance of these tokens in the next year. This would reverse its 2017 ban on all initial coin offerings.
Busan’s ambition to be a hub for cryptocurrency also includes the attraction of blockchain companies. The city became a regulatory-free zone in 2019 for blockchain testing and related business development. It currently supports six projects by 17 businesses. The total number of blockchain companies in Busan International Finance Center has risen to 29 since December 2017.
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