EOS Network Foundation (ENF), the new entity entrusted by the EOS community to develop its core blockchain software, today announced the signing of a Memorandum of Understanding (MoU) with the City of Busan in South Korea.
As part of the agreement, EOS joins a clutch of reputable crypto players to establish the Venture Capital Alliance of Busan Blockchain (VCABB), which collectively holds $700 million assets under management. The initiative of Busan, the second-largest city in South Korea, is also backed by AlphaNonce, CoinNess, Foresight Ventures, OKX Blockdream Ventures, and Ragnar Capital Management.
Under this agreement, the VCABB will contribute to the development of the blockchain ecosystem in Busan city by investing $100 million into blockchain-related companies over the next three years.
In addition, the six domestic and foreign venture capitals will supply the necessary resources to attract large amounts of foreign capital for blockchain sector development. Busan will provide administrative and regulatory assistance, while the VCs attract more investments from abroad.
The alliance comes at a time when EOS ecosystem is undergoing some significant changes, said founder Yves La Rose earlier this month while speaking about two new initiatives dubbed Recover+ and Yield+.
“We hope to invest in and bring over interesting projects to the city of Busan, we are extremely bullish on the local ecosystem and hope to play a part in its future growth,” said Tony Cheng, Foresight Ventures General Partner.
“South Korea is home to a number of world-class VC firms and Web3 startups, and we believe that the creation of the Venture Capital Alliance Busan Blockchain (VCABB) will help accelerate the adoption of blockchain globally. We are committed to working with the city of Busan and our partners to invest in tangible blockchain-related developments that will benefit the city and its stakeholders. This MoU is a major step forward in our mission to promote the use of EOS blockchain technology,” added Yves La Rose, Founder and CEO of the EOS Network Foundation.
The city of Busan has inked similar partnerships with Binance, FTX, and Huobi to attract new talent and to support the city’s ambitions to transform itself into a global digital finance hub.
South Korea sets two main necessities for digital asset companies to fulfill. Upon completing real-name verification and partnering with a local bank, digital assets platforms are required to acquire a license from the country’s Financial Intelligence Unit (FIU). This is a unit of the Financial Services Commission (FSC), the country’s top financial regulator. On top of these stricter rules, crypto exchanges must obtain a security certificate from the Information Security Management System (ISMS).