Despite the collapse of Terra and its assets, South Korea continued to trust the cryptocurrency industry. However, the downfall of FTX averted this conviction. Busan in particular welcomed FTX as one of the prominent partners of its digital exchange program. Yet, things certainly have not gone as planned. Therefore, Busan was shifting focus to a commodities exchange as opposed to a cryptocurrency trading platform.
The second-largest city in South Korea, Busan, stated on Thursday that it would roll out an exchange for commodities. This platform is expected to debut in the second half of 2023.
According to the Busan government, the city’s exchange will employ blockchain to tokenize commodities. This would further enable traders to invest modestly into pricey sectors like gold, real estate, and even intellectual property [IP]. The tokenization of gaming and film IP will be the first step in the exchange.
The Busan International Film Festival [BIFF] and the G-Star exposition of video games take place in this city. As a result, the government’s latest move could garner immense traction.
While the launch is scheduled for later this year, other things are expected to start in Feb. The city plans to formulate a legitimate enterprise and start conducting technological testing, next month. A date has not been provided, but the city remarked that it intended to eventually broaden the exchange’s offerings to include all blockchain-based digital assets.
Here’s why Busan is setting up this exchange
By developing a decentralized fair exchange framework that is different from current domestic virtual asset exchanges, the imminent Busan Digital Asset Exchange intends to drive digital innovation in numerous ways while defending investors.
Chairman Kim Sang-min of the Busan Digital Asset Exchange Establishment Promotion Committee further added,
“The goal is to create the world’s best decentralized digital commodity exchange, where capital and companies from all over the world gather based on Korea’s advanced information technology (IT) infrastructure and excellent human and material resources.”