On Monday, Binance, the largest cryptocurrency exchange in the world, finished its due diligence on the acquisition of Gopax and officially re-entered the South Korean market. Gopax ranks as one of the top five cryptocurrency exchanges in South Korea.
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According to a government official with knowledge of the situation, the acquisition announcement was originally scheduled for the Christmas holiday but was postponed owing to final negotiations.
When Binance Acquires Gopax, South Korea Will Have Another Trading Option
Following its departure from South Korea in January 2021, Binance CEO Changpeng “CZ” Zhao actively pursued opportunities to return. Binance still sees South Korea as a promising market, as it is home to one of the world’s largest crypto economies, a large pool of talented individuals, and a thriving startup scene. Binance’s growth into South Korea will be crucial if the company is serious about becoming a market leader in the next generation of blockchain and web3 technologies.
Token Distribution On The Blockchain
Token distribution on the blockchain, January 2nd. Binance has just finished their research into purchasing Gopax. CEO Lee Jun-haeng, who owns 41.2% of Gopax, and Binance are in the closing stages of negotiations for the purchase of a majority interest.
According to a source acquainted with the situation, “we had expected to announce the acquisition around Christmas last year, but we are in the process of final discussions on the valuation of the stake.”
For reasons including anti-money laundering and investor protection, the South Korean financial authorities have stringent regulations for overseas virtual asset operators. Since the Terra-LUNA incident, the crypto industry has been subject to stricter regulations and more frequent audits.
When it comes to the cryptocurrency market in South Korea, Upbit has an overwhelming 80 percent stake. Nonetheless, Binance’s participation in the market may shift consumer preference toward Gopax.
The Development of Binance in Southeast Asia
In 2022, Binance made significant strides in expanding its presence in both European and Southeast Asian countries. With the purchase of Sakura Exchange BitCoin on November 30, 2018, Binance officially entered the Japanese market (SEBC). Also, in December, it bought the Indonesian cryptocurrency exchange Tokocrypto.
Source: Google Trend