On Sept. 21, Busan Mayor Park Heong-joon and the Busan Digital Asset Exchange Establishment Promotion Committee held a press conference at Busan City Hall to announce a “Plan for Establishing the Busan Digital Asset Exchange.”
The main objective is to create a fourth-generation blockchain-based exchange operating under a decentralized governance system, enabling the tokenization and trading of all valuable assets such as commodities, precious metals, intellectual property rights, and carbon emission credits.
The Busan Digital Asset Exchange Corporation is set to launch by the end of this year. Starting from mid-next month, the exchange plans to initiate the public solicitation process for selecting exchange operators, with the goal of finalizing the operator selection by November and establishing the exchange corporation within the year.
The corporation will be established with 100 percent private capital. It will operate as a consortium, with leading global companies possessing blockchain technology capable of building exchange systems participating in the business. However, Busan City will provide administrative and financial support throughout the establishment and operation process in accordance with regulations.
If everything goes as planned, the exchange operations are set to commence next year. The exchange will facilitate trading by tokenizing commodities such as gold, silver, copper, crude oil, ammonia, and other items traded through Busan Port. Additionally, it will create a market for trading intellectual property (IP) rights like those related to the Busan International Film Festival, carbon emission credits, and more. Importantly, there are plans to expand the trading domain to include cryptocurrencies and security token offerings (STOs).
The core infrastructure of the exchange operates on fourth generation blockchain technology. Unlike traditional Home Trading Systems (HTS) that rely on third generation of the server-based technology, the use of a blockchain network ensures security against hacking and makes data tampering impossible. Customers can directly manage their assets without intermediaries, resulting in reduced transaction costs.