On Monday, the biggest cryptocurrency exchange in the world, Binance, finished the required due diligence for the purchase of Gopax and will reenter the South Korean market. In South Korea, Gopax is one of the five major cryptocurrency exchanges.
An official with knowledge of the situation claims that the acquisition announcement was supposed to happen around Christmas but was postponed because of final negotiations
Binance Planning on Re-Entering the South Korean Markets after Purchasing Gopax
According to reports, Binance is nearing completion of a 41% acquisition of the South Korean exchange Gopax. If successful, the action would permit Binance to resume operations in the South Korean cryptocurrency market.
Binance said in late 2020 that it would shut down its transient branch in South Korea. During the period, the exchange identified low trading volumes and restricted liquidity as the main causes of the withdrawal. Two years later, Changpeng “CZ” Zhao, the CEO of Binance, was actively seeking re-entry into South Korea after the company left in January 2021. South Korea, which remains a desirable market for Binance, has one of the best cryptocurrency economies in the world as well as a flourishing startup ecosystem and an exceptional talent pool. The most essential expansion for Binance to assume leadership in the following wave of blockchain and web3 advancements will be in South Korea.
In 2021, Binance won’t open up international crypto trading services in the nation until the Gopax move. Between 2019 and 2021, Binance ran a business in South America. It has also aided Busan City in creating a blockchain ecosystem. In August 2022, a Binance office was established in Busan
In order to protect investors and fight against money laundering, South Korean financial authorities set up strong rules for overseas companies of virtual assets. After the Terra-LUNA scandal, crypto companies must now adhere to strict rules in addition to the usual inspection.
The transaction is anticipated to significantly shake up Korean exchanges. Currently. Upbit currently holds 80% of the market share, while Gopax holds 0.1%, but Binance’s arrival might substantially change the balance. With twice as many virtual assets available to investors as Upbit, Binance has tremendous marketing resources and may be highly enticing and its arrival into the market can shift Gopax’s market share.
Binance is a digital asset exchange platform that enables users to purchase, sell, and trade various cryptocurrencies. It is one of the largest and most popular exchanges in the world, with a wide range of trading pairs and low fees. Binance also offers a variety of other services, such as margin trading and a decentralized exchange
The decision made by Binance to enter back into South Korea is key in boosting the organizational growth and enhancing the economy of the country, even though there may be ups and downs, however, systems will be put in place to make sure there are no losses of downtime in any way.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.