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Busan Hosts Blockchain Conference with Aim to Become Digital Financial Hub

Policy & Regulation·April 26, 2023, 1:37 AM

Busan Metropolitan City hosted a blockchain conference on Monday as part of its aim to establish itself as a leading digital financial hub, according to Korean news agency News1.

Busan, ocean view
©Pexels/BERK OZDEMIR

 

Dot-com bubble comparison

During the conference, Kim Sang-min, chairman of the Busan Digital Asset Exchange Establishment Committee, highlighted the distortion in the blockchain landscape caused by unfair trading due to market monopolies and subsequent regulatory challenges. He compared the current situation to the dot-com bubble, stating that despite past issues, Korea has become a technological powerhouse. Kim suggested that while there may be challenges in the crypto exchange industry, excessive regulation should be avoided to promote growth.

Kang Dae-goo, CEO of crypto exchange Borabit, agreed that many industries face initial growing pains, and the crypto industry is no exception. He urged Korea to join the race with financially-advanced countries promoting cryptocurrency in order to thrive in the digital age.

 

Busan as digital financial center

Experts at the event identified Busan as the city with the greatest potential to become the nation’s premier digital financial center. Kim noted that Busan, which has been designated as a zone with lenient blockchain regulations, houses financial institutions with assets totaling 261 trillion won (~$195 billion) as of 2021. The city also hosts various international events for games and movies, providing ample content to develop virtual asset ecosystems.

Kim proposed the establishment of a digital asset exchange that focuses on investor protection, emphasizing decentralization, fairness, and integration. He called for addressing current monopolistic governance practices and resolving unfair practices within crypto exchanges, such as cryptocurrency listing evaluations.

 

More efforts urged

Attendees at the conference suggested that the Busan government and regional banks should take the lead in building infrastructure to attract companies. Kang noted that even though Busan has been designated as a blockchain special zone for four years, 48% of the industry remain unaware of this. He encouraged Busan to step up its efforts, citing examples of other municipalities, such as Incheon, which are actively engaging in various blockchain projects.

Kang stressed the importance of public bodies providing infrastructure and support to attract businesses, adding that a business-friendly environment with a proper screening scheme will facilitate self-correction within the blockchain market as problematic companies are gradually filtered out.

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