BUSAN– In a strategic move, Busan Metropolitan City, in collaboration with the ‘Busan Digital Asset Exchange Establishment Committee’, has unveiled plans to establish the Busan Digital Asset Exchange.
This initiative was conceptualized last December when the city formed the committee comprising of private sector experts. The proposal is based on insights and suggestions received from the committee.
Busan’s Vision: To be a Blockchain Pioneer by 2026
Busan Metropolitan City is poised to transform itself into a global leader in blockchain technology by 2026. This vision, dubbed “Target 2026 Blockchain Busan”, aims to drive the domestic blockchain industry as a next-generation export and a significant revenue stream for the future. To achieve this:
- A private fund, tentatively named ‘Busan Blockchain Innovation Fund’, will be created. Financial public institutions within Busan will primarily back this endeavor.
- A consortium of advanced blockchain technology companies, temporarily called the ‘Busan Blockchain Alliance’, is also set to be inaugurated soon.
- Busan has further plans to upgrade its ‘Busan Blockchain Regulatory Free Zone’ to a ‘Global Innovation Zone’ with a comprehensive negative regulation application, collaborating closely with relevant ministries, including the Ministry of SMEs and Startups.
Busan Digital Asset Exchange: What’s in Store?
During the announcement, the city elucidated that the Busan Digital Asset Exchange would operate under a decentralized governance model, ensuring that all values are tokenized for trade. This fourth-generation blockchain exchange implies:
- A system where functions like deposit settlement, listing evaluation, and market monitoring are segregated to different entities, ensuring checks and balances. Busan will provide both administrative and financial support for establishing these related bodies.
- Utilizing blockchain technology, assets like raw materials, precious metals, intellectual property rights, carbon credits, and Security Token Offerings (STO) will be tokenized, facilitating 24-hour trading. Given the ongoing regulatory adjustments, the scope of trading support will continuously expand from regulation-free products to STOs.
- The “fourth-generation blockchain exchange” represents the evolution from face-to-face to telecommunication, computers, and now blockchain-based infrastructure. City officials anticipate enhanced security, reduced operational costs, and a potential synergy with various Busan-based blockchain projects.
Interestingly, the Busan Digital Asset Exchange will be entirely funded by private capital. The city, however, is committed to extending administrative and financial support as per relevant regulations to ensure the exchange’s successful establishment and operation.
A selection process for exchange operators is slated for mid-October, focusing on their understanding of the “Blockchain City Busan” vision and their execution capabilities. Prospective consortiums must submit detailed plans, including decentralized governance structures, collaboration plans with other Busan blockchain projects, global collaboration and market entry strategies, contributions to Busan citizens, and local blockchain ecosystem creation.
The selection committee established by Busan City will scrutinize documents and proposals, with the final operator expected to be chosen in November.
Global Outlook and Ambitions
The committee chairman emphasized, “With countries like the US, European Union, and China competing for dominance in the blockchain ecosystem, we foresee all valuable assets eventually being traded via blockchain. Our objective is to establish a decentralized, integrated trading model in Busan, setting a global standard.”
Busan Mayor, Park Heong-joon, remarked, “Our vision for ‘Blockchain Busan’ will be a pillar for the Busan World Expo 2030. Korea has often followed advanced countries. However, in the blockchain domain, we aspire to be pioneers and lead the global market. Aligned with the digital transition wave, Busan aims to emerge as a genuine global financial hub.”
Mayor Park continued, “Busan will be the testing ground and frontline for exporting the blockchain industry. We plan to nurture this as Korea’s next mainstay industry, succeeding shipbuilding and semiconductors. To achieve this, we’ll collaborate extensively with the central government, related ministries, blockchain sector, and experts.”
This venture by Busan City holds the potential to reshape the financial and technological landscape, placing Korea firmly on the global blockchain map.