Binance Negotiates To Acquire Gopax, A top 5 Korean Exchange

Key Points:

• Binance will acquire 41.2% of Gopax shares from CEO Lee Jun-haeng while maintaining the exchange’s current operational system.
• At the same time, other Korean crypto news outlets said that Binance, the world’s largest cryptocurrency trading platform, is completing plans to acquire Gopax.

Binance, a cryptocurrency exchange, is rumored to be ramping up its development strategy as it continues to acquire South Korean exchange Gopax.

On the afternoon of January 2, multiple Korean crypto news outlets claimed at the same time that Binance, the world’s largest cryptocurrency trading platform, is finalizing steps to purchase Gopax, Korea’s top 5 trading platform. Kimchi country.

The source revealed that the platform will buy back 41.2% of Gopax shares from CEO Lee Jun-haeng while keeping the exchange’s present operating system. Gopax, along with Upbit, Bithumb, Coinone, and Korbit, is one of the five largest cryptocurrency exchanges in South Korea. Both exchanges have declined to comment on the transaction.

This is Binance’s latest attempt to join the Korean market, which has previously failed owing to regulatory obstacles. The firm developed a sub-platform, Korea Branch, to service Korean users in 2020, but had to withdraw due to inability to meet financial transparency, anti-money laundering, and investor protection regulations.

Meanwhile, Gopax is a cryptocurrency exchange that has filed a bank account in Korea and has a presence in this market, while Upbit controls 80% of the industry. Binance will most likely revamp Gopax’s operations by listing more new spot trading pairs, but supporting derivatives trading such as margin or futures will be tough because Korean law prohibits it.

The world’s largest platform also inked an agreement to acquire Japan’s Sakura Exchange BitCoin and Indonesia’s Tokocrypto in the latter two months of 2022, two platforms that currently have licenses to operate in their respective countries, mirroring the company’s present approach. Binance will join the market by acquiring regulated enterprises rather than starting from scratch and going through a licensing procedure that will obviously be scrutinized.

Binance announced the creation of a $1 billion Market Relief Fund following the FTX meltdown, however there have been no new updates on the fund’s status in over a month.

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