Busan drops global crypto exchange from its digital exchange plans
Busan, South Korea, known as “Blockchain City,” has moved one step closer to creating a local cryptocurrency exchange, but it has also cut ties with most of its centralized global exchange partners. After the recent failure of centralized exchanges, a disaster, it was decided to move quickly.
When it was said that the city would put together a steering committee of 18 local blockchain experts, all five exchanges that had agreed to help the city set up its first official digital asset exchange were absent. But people in the city did hear about it. Binance, Crypto.com, Gate.io, and Huobi Global were among the five businesses in the group. One of the exchanges was also FTX.
The steering committee’s job is to advise on how the digital asset exchange should be built and run and to improve the system for working with people outside the organization.
Due to the failure of FTX, it became clear that cryptocurrency exchanges worldwide might not be part of the plan. The organization’s leaders were still determining if they should include private exchanges in their plans, but they were sure they could reach their blockchain goals without help from a third party.
People say that the problems that large cryptocurrency exchanges like FTX have been having worldwide played a role in the decision. Another council member said the talks were separate from the city’s plan. At first, all they had to do was give the city money.
The business plans South Korea has for cryptocurrencies are in danger
The government of South Korea wants the city of Busan to be the center of blockchain technology in the area. The City wants to set up both an exchange that will decide whether digital assets are securities and a market management agency that will be in charge of listing and analyzing digital assets and market monitoring, supervision, deposit, and settlement.
After making a fund in the first half of the following year, the city started looking for new members. In July 2019, Busan officially declared a blockchain zone with no rules. The City wants to use blockchain technology in many businesses, like the hospitality industry, the financial sector, the logistics sector, and the public safety sector.
Since then, the government has made a lot of progress toward its goals for blockchain. It said at the end of 2019 that it would work with a telecommunications company to create a digital currency based on blockchain. Bitcoin trading is the best place to receive an honest overview of trading bitcoins.
Centralized exchanges make it easy for new traders and investors to buy and sell cryptocurrencies on a platform that is easy to use. Users of centralized exchanges can check their account balances and make trades by signing in to their accounts through apps and websites. Different from using cryptocurrency wallets and peer-to-peer transactions, which can take time to set up.
Centralized exchanges give users an extra layer of security and trust regarding transactions and trading. Companies that are responsible for their clients’ assets run centralized exchanges. The help of their clients is also taken care of by these companies.
Mt. Gox was the biggest cryptocurrency exchange company in the world until it said that 850,000 bitcoins had been stolen. This caused the company to go bankrupt. On the other hand, centralized exchanges usually have high transaction fees for their services and ease of use. When a lot of money is at stake, costs like these can be very high.
Most CEOs will only let you use your digital wallet to store your private keys. Instead, they will keep your digital assets safe by putting them in their digital wallets. This could be the most important thing. Even though trading is getting easier, there are still issues. The biggest ones are the chance of fraud and the fact that the centralized cryptocurrency exchange could fail.
The algorithmic stablecoin TerraUSD and its sister token Luna, which had a market cap of 50 billion USD, failed in the past few years. Also out of business were Three Arrows Capital, Celsius Network, Voyager Digital, FTX, and Alameda Research.