Busan Bank scrapped its plan to establish a cryptocurrency exchange when the port city of Busan becomes a regulation-free special blockchain zone.

The decision came after the government is moving to ban the initial coin offering (ICO) even in the special zone, to be designated this year.

Busan’s plan to become a blockchain hub is to become ‘toothless’ as the government excludes the ICO in the exclusive zone.

Few blockchain developers are likely to move to Busan in the blockchain zone where ICOs are impossible.