According to reports published on January 9, Bithumb’s subsidiary GCX Alliance had already expressed its intention of investing 10 billion won or $8 million into the government’s significant Blockchain initiative. Sources familiar with the matter revealed that the crypto exchange intends to invest the fund toward the Busan-based Tongsan Asset Exchange.
Early last year, the South Korean president, Moon Jae-In, stressed the necessity for regulatory innovation of Blockchain and other emerging technologies in the country. After performing a careful consideration, the national government declared the city of Busan as a regulation-free zone for Blockchain-related initiatives and developments.
In July 2019, the Ministry of SMEs and Startups confirmed that Busan, the second-largest city in South Korea by population, would host a wide array of Blockchain offerings across a variety of industries. The list includes finance, tourism, and public safety.
Notably, the initiative that made the most headlines is Busan’s plan of creating its Blockchain-based digital currency. Last December, KT, the largest telecom company in South Korea, introduced a digital currency that is exclusive to Busan.
According to industry analysts, Bithumb’s future venture has been inspired by the recent endorsement of South Korea’s Presidential Committee on crypto derivatives and other related products. As emphasized by the committee in its recommendation, there is no way to stop the crypto asset trade market from flourishing.