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Huobi signs MoU with the South Korean city of Busan

By Darius McQuaid

Edited by Charlie Mellor

14:31, 14 September 2022

Huobi logo displayed on a smartphone surrounded by representations of cryptocurrencies
This news comes a month after Binance also signed a MoU with the city – Photo: Getty Images

Cryptocurrency exchange Huobi has signed a Memorandum of Understanding (MoU) with the city of Busan in South Korea.  

The agreement comes just a month after Binance, the world’s largest cryptocurrency exchange by trading volume, also signed a MoU with the city.

Huobi signed the agreement on 14 September to help “foster blockchain industry growth” as well as pledge research and development (R&D), technology and financial support to the Busan Digital Currency Exchange.

The Seychelles-based cryptocurrency exchange has had an office in South Korea since 2019 and received a mandatory licence from the South Korean Financial Services Commission in 2021.

Busan Mayor Park Heong-joon said: “The City of Busan is pleased to partner with Huobi to foster the growth of our blockchain ecosystem. As a blockchain regulation-free zone, Busan offers a conducive environment to develop the latest digital financial technologies, which has attracted many blockchain companies from across the world.”

What are Binance’s plans in Busan?

When Binance signed its MoU, it said it planned to begin “utilising Busan’s blockchain regulatory-free zone to promote blockchain initiatives and businesses”.

SOL/USD

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Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

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Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,487.46 Price
-0.340% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.14 Price
-2.970% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Furthermore, the crypto exchange said it was aiming to set up a South Korean office in Busan by the end of 2022, support blockchain-related research and investments and provide blockchain education via Binance Academy.

At the time Changpeng Zhao, CEO and founder of Binance, said: “Through our industry-leading position and technological expertise, combined with the City of Busan’s strong support for the blockchain industry, we hope to help grow crypto adoption within the city and beyond.

“We look forward to our close cooperation with the city to support the establishment of digital asset exchanges and various blockchain industries."

Three crypto exchanges now have ties with Busan

In August 2022, Busan also partnered with cryptocurrency derivatives exchange FTX to help build a local crypto exchange and foster blockchain development.

Amy Woo, CEO of FTX Investment Division, said: “We plan to establish a Korean branch of FTX in Busan within [the] next year, and FTX will actively cooperate so that Busan can grow into a digital financial hub city in Asia.”

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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