Busan Picks Local Consortium for Its Delayed Digital Exchange, Crypto Hopes Dashed

South Korea's Busan, aiming to be the first city with a government-run digital asset exchange, has chosen a local consortium to operate its platform. But the launch, initially planned for 2023, now faces further hurdles and likely won't include crypto trading anytime soon.

Key Points:

• Preferred Bidder: Busan BDX Consortium, led by ITcen, beat out gaming giant WeMade (whose token faced controversy).
• No Crypto for Now: Plans for crypto and STO trading are shelved due to regulatory roadblocks.
• Initial Focus: Tokenized commodities, intellectual property, and carbon credits.
• Challenges Ahead: City needs "competitive products" to catch up and attract significant transaction volume.

Analysis:

While choosing a local operator is a step forward, Busan's exchange ambitions are significantly scaled back. Regulatory hurdles have dashed hopes for immediate crypto and STO trading, key elements of the original vision. The focus on less prominent asset classes might not generate enough volume to compete with established private exchanges.

The city's delayed launch and revised scope raise questions about its ability to stay relevant in the fast-paced world of digital assets. Moving forward, Busan needs to address regulatory issues, develop appealing products, and build stable technology to stand out in a crowded market.