Binance is said to be on its way to finalize the final steps to acquireExcHAnGE Crypto Gopax of South Korea. According to local media Decentralizethe process of proper care upon completion, there would be only a few formalities left to complete for the country’s fifth platform, with just 0.1% market share, to join the global race. Maybe the key the prospect of competing with Upbit which reigns supreme in the peninsula holding 80% of transaction volumes crypto.
A Binance/Gopax deal
The deal was due to be completed in December, but last-minute negotiations over the value of the stake delayed it. However, Korean media reports this Binance would buy a stake from the current CEO of Gopax, Lee Jun-Haeng, who is also the main shareholder with 41.2% of the company’s shares.. This will remain in place for the time being to ensure management stability.
Gopax, like all crypto platforms, had a difficult 2022. She was hit particularly hard by the turmoil that wiped out crypto lender Genesis after the fall of FTX. Indeed, it had developed an equity offering in collaboration with consortium company Digital Currency Group (DCG) which also owns a 14% stake in Gopax.
Binance returns to the South Korean market
In fact, buying Binance can save it, just like would allow platform no. 1 to reconnect with the very closed Korean market. At odds with local regulatory authorities, the giant’s 2020 attempt to launch a Binance KR was quickly aborted. And he was not the only one to suffer the wrath of the very sharp regulators who, in their repressive orientations, reproduced the monopoly model that exists in the traditional economy in South Korea.
In fact, only 5 domestic crypto exchanges have a storefront today. In addition to the two previously mentioned, we find Bitsum, Coinone and Corbit. But with Binance entering the game, the landscape could change, with the range of options available to investors expanding significantly.
Note, however, that despite a torturous history, Binance was not completely absent from the fresh breakfast spot. last august, the exchange signed a memorandum of understanding with the major port city of Busan to support its ambition to become a crypto/blockchain hub and develop “Busan Digital Asset Exchange”.
Binance eyes the Asia-Pacific market
When Binance runs into trouble with local regulators, its strategy is well-suited to fall back out the window. In this way Does the CZ platform often proceed in the same way to penetrate reluctant markets: buying a company – or shares – after they have already received the precious sesame from the local authorities. Until last November, it bought 100% of the company Sakura Exchange BitCoinentering thus in the Japanese market as an entity regulated by the Japan Financial Services Agency. As an indication, note that the Kraken did the exact opposite, withdrawing from the island of the rising sun due to a difficult context.
While on its Asian offensive, Binance has also won Indonesia’s leading crypto exchange last month, Tokocrypto.