Binance, the world’s largest cryptocurrency exchange, is reportedly planning to enter the Korean market by acquiring Gopax, a Korean exchange. According to Decenter, Binance has completed its due diligence for the acquisition and is currently in the process of finalizing the deal, including confirming procedures.
According to a report by Xangle Research, the global cryptocurrency market has experienced significant growth over the past three years, with a year-over-year increase of 200%.
The report also examines the Korean crypto market in greater detail, which has also significantly grown in recent years. It is currently the third-largest market in terms of Bitcoin trading volume, at 8.7%.
According to an official with industry knowledge cited in the report:
We originally planned to announce the acquisition around Christmas last year, but we are in the process of final discussions on the value of the stake.
The report stated that Binance plans to purchase a 41.2% stake in Gopax from CEO Lee Jun-haeng, the largest shareholder, but will maintain the current management structure for stable operation.
Binance & The Koren Market
Gopax is one of the major Korean exchanges that enables users to buy and sell crypto using the Korean won. In the past year, it linked its real-name account to Jeonbuk Bank and began operating as a won currency exchange.
Additionally, it had been actively expanding its domestic business but faced a liquidity crisis due to negative events such as global economic downturns and the bankruptcy of FTX.
Binance has been trying to enter the Korean market for a while but has been unable to do so due to strict regulations from financial authorities related to anti-money laundering and investor protection. As a result, it has been pursuing an alternative route to enter the market.
Upbit now dominates the majority of the local cryptocurrency market, but if strong capitalist Binance starts aggressive marketing with Gopax in the forefront, perceptions might drastically alter.
However, the report also mentioned that Binance declined to provide an official statement on the acquisition, and Gopax stated that they are unable to confirm the facts.
It is believed that the partnership between Binance and Gopax will expand the investment options for domestic investors and facilitate the international expansion of domestic projects.
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