South Korea: Busan sees transformation into blockchain hub with Huobi tie-up

Busan, the economic pulse of South Korea, has entered into an agreement with Huobi Global and Huobi Korea to revamp the city’s distributed ledger infrastructure. Huobi Global made the announcement via a press release on Wednesday, confirming that a memorandum of understanding had been signed.

“The city of Busan is pleased to partner with Huobi to promote the growth of our blockchain ecosystem,” said Busan Mayor Park Heong-joon. “As a blockchain regulation-free zone, Busan offers a favorable environment for developing the latest digital financial technologies, which has attracted many companies from around the world.”

The partnership will see Huobi leverage its deep expertise in the sector to provide research and development opportunities for the new industry. Furthermore, Huobi Global has promised support for the newly established Busan Digital Currency Exchange through financing and establishing a talent pool for the institution.

The newly signed memorandum between Huobi and Busan is not their first rodeo together. The global digital asset exchange had previously opened a local office in South Korea and gained a significant client base of residents. The firm has had to fight for market share among other competing firms such as FTX and Binance, all of which have also established themselves in the country.

Park’s latest deal with Huobi illustrates his efforts to renew the city’s infrastructure for digital assets and to explore new use cases to improve the lives of citizens. The city’s efforts to be a hub have fallen below standards as a report revealed that “the blockchain hub team consisted of fewer than five employees working from a shared office space.”

While Busan is optimistic, the wider ecosystem cowers in fear

The collapse of Terra in May triggered an investigation by South Korean law enforcement agencies and local stock exchange regulators into their role in the implosion. Financial conditions were scrutinized, and impromptu raids were conducted to uncover any improprieties.

The effects of law enforcement efforts have undoubtedly dampened investor enthusiasm in the country’s digital asset industry. There are widespread reports that South Korean authorities are redoubling their efforts to capture Terra founder Do Kwon, with the latest plan to invalidate his passports and those of four others.

As regulators are in intervention mode, new players in the ecosystem are taking a cautious approach in a terrain that can see rules change with the stroke of a pen. Before the Terra incident, South Korea was ahead of the pack in digital asset adoption, and its government’s plans to create a living metaverse hub drew applause from far and wide.

Behold: ‘Snow Crash’ Metaverse Coming in 5 Years, Says Omniscape’s Robert Rice

width=”562″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>

New to Bitcoin? Check out CoinGeeks Bitcoin for beginners section, the ultimate resource guide for learning more about Bitcoin – originally envisioned by Satoshi Nakamoto – and blockchain.