Busan City intends to establish the world-first decentralized digital commodity exchange.
Tokenizing commodities would enable traders to invest modest interests in-expensive products.
South Korea’s second-largest city Busan will launch the first decentralized digital commodity exchange in the world, where all goods will be tokenized and traded using blockchain technology.
The announcement came as its earlier plan to pursue a city-backed cryptocurrency trading platform. However, according to a press release from the Busan city administration, tokenizing commodities would enable traders to invest modest interests in-expensive products like real estate, gold, and intellectual property.
Busan City Initiatives
On Thursday a meeting between the Busan City Government and the Busan Digital Asset Exchange Establishment Promotion Committee resulted in the announcement of the future vision.
The Busan Digital Asset Exchange Establishment Promotion Committee explained that the strategy entails combining domestic financial institutions and digital asset exchanges as well as implementing a transaction support system that would serve as the exchange’s foundation.
The port city is also well-known for the G-Star video game exhibition and the Busan International Film Festival (BIFF). As the exchange will tokenize the intellectual properties of video games and movies. In February, Busan plans to create a legitimate corporation and conduct technical tests. Also, the city stated that it intended to eventually enhance the exchange’s offerings to include all blockchain-based digital assets.
Further, on January 19, South Korea’s Financial Supervisory Services (FSS) proposed to create a cryptocurrency monitoring tool. And this rewards and penalty system would be added to the identity verification system by the end of January. It will encourage cryptocurrency investors to provide identifying information while engaging in transactions. Also, investors who refuse to verify their identity will face penalties.