The Launch of Busan’s Blockchain-Powered Digital Assets Trading Platform
The city of Busan in South Korea is getting closer to launching its blockchain-powered digital assets trading platform. The city aims to become the world’s first city government-run exchange, and it has now named a preferred bidder for the project.
Introducing the Busan BDX Consortium
The preferred bidder is a consortium called the Busan BDX Consortium, which consists of 11 companies, including IT firms, financial institutions, and other local businesses in Busan. The consortium is led by ITcen, an infrastructure and IT technology specialist with a market capitalization of around $123 million.
Why the Consortium Was Chosen
The consortium beat out competition from gaming giant WeMade due to controversies surrounding WeMade’s cryptoasset, WEMIX. Last year, the nation’s five biggest crypto exchanges delisted WEMIX after complaints of irregularities. The city also wanted to work with firms that have a strong presence in Busan and understand the local industrial ecosystem.
Next Steps for the Platform
The city will now seek approval from the Busan City Council to launch the platform. Once approved, the consortium is expected to sign a business agreement with the city in January. The exchange operator will have full control of operation and ownership, while the city will provide administrative and financial support.
What Will Be Traded on the Exchange?
The original plan was for the exchange to trade cryptoassets and securities token offerings (STOs). However, regulatory hurdles have forced a change in plans. Initially, the platform will handle tokenized commodities like precious metals, as well as intellectual property rights and carbon emissions-related tokens and certificates.
Long-Term Plans for the Platform
The city aims to expand the scope of transactions on the platform in the long term. However, some experts have expressed disappointment that the exchange will not be able to trade virtual assets and STOs. They believe that competitive products and stable technology are essential for the survival of exchanges in a booming market.
Hot Take: Busan Takes a Step Towards Its Blockchain-Powered Exchange
The city of Busan in South Korea is making progress towards launching its blockchain-powered digital assets trading platform. By naming the Busan BDX Consortium as the preferred bidder, Busan is one step closer to becoming the world’s first city government-run exchange. The consortium, led by ITcen, was chosen due to its expertise and understanding of the local industrial ecosystem. While the platform will initially handle tokenized commodities, intellectual property rights, and carbon emissions-related tokens, there are hopes to expand its offerings in the future. However, some experts express concerns about missing out on trading virtual assets and STOs. Despite this, Busan’s exchange could still thrive with competitive products and stable technology.
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