Binance will Re-Enter South Korean Market with Gopax Acquisition
- Binance has recently completed due diligence on the acquisition of Gopax, a South Korean crypto exchange.
- Gopax is a part of the Digital Asset eXchange Alliance (DAXA) along with Upbit, Bithumb, Coinone, and Korbit.
- The exchange is “in the process of final discussions on the value of the stake,” according to a source.
- “Binance will buy a stake (41.2% stake) from CEO Lee Jun-haeng, the largest shareholder of Gopax,” a report said.
As centralized crypto exchanges continue to witness drying trading volumes, many have decided to lay back on the expansion part and build on what they have. However, the world’s biggest crypto exchange, Binance, has taken advantage of the market conditions worsened by the collapse of multiple crypto firms, and expanded into other global markets. Interestingly, to expand into South Korea, the exchange has reportedly acquired a local exchange.
According to a report from a local media outlet, Binance is reportedly close to completing the acquisition of Gopax, a South Korean crypto exchange that is part of the Digital Asset eXchange Alliance (DAXA) along with Upbit, Bithumb, Coinone, and Korbit. Interestingly, this means that the world’s biggest exchange will now also be linked to the DAXA following the acquisition of Gopax.
DAXA is the first joint consultative body of South Korea which was formed after many crypto investors complained about the lack of supervision and regulatory involvent in the crypto industry in South Korea. Additionally, it is also crucial to note that Binance has completed due diligence on the acquisition of Gopax, and the official announcement might soon follow.
Citing a source familiar with the matter, the report from a local media outlet confirmed that Binance had planned to break the news in Christmas 2022 but did not do so because the exchange is “in the process of final discussions on the value of the stake.” The report also stated that “Binance will buy a stake (41.2% stake) from CEO Lee Jun-haeng, the largest shareholder of Gopax, but will maintain this representative system for the time being for stable management.”
Binance has been increasingly trying to enter global markets but hasn’t been able to do so because of extreme regulatory pressure and the presence of strict anti-money laundering laws in some regions, including South Korea. However, the leading exchange under the leadership of Changpeng Zhao, also known as CZ in the crypto space, remains undeterred and continues on its path of absolute dominance.
Recently, Binance confirmed its re-entry into the Japanese market after four years with the acquisition of Sakura Exchange BitCoin, a Japanese crypto exchange service provider, following which it can now enter Japan “as a Japan Financial Services Agency (JFSA) regulated entity.” As per an announcement, the exchange “aims to support a responsible global environment for cryptocurrencies” by offering Japanese-regulated services through SEBC.
On the other hand, the leading exchange also entered the Indonesian market with the acquisition of local crypto exchange Tokocrypto. Binance’s portfolio company CEO, Yudhono Rawis, will serve as interim CEO for the Indonesian exchange.
Tokocrypto’s co-founder and CEO, Pang Xue Kai, will soon resign from his position. Surprisingly, around 58% of the employees of Tokocrypto were fired due to market conditions.