Binance Reportedly In Talks To Acquire Korean Crypto Exchange Gopax

Binance, the world’s leading cryptocurrency exchange, is looking to enter the South Korean market by acquiring the local trading platform Gopax. 

Binance Eyes The South Korean Market

According to a report by the South Korean media outlet Decenter, Binance is currently conducting due diligence on the acquisition and could finalize the process soon. 

The deal was initially set to be announced late last year but was delayed due to consultations over the company’s equity value calculations. 

This latest development doesn’t come as a surprise, as Binance purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company. Binance is expected to maintain the current representative system for the time being for stable management, the report added.

Gopax is a leading South Korean cryptocurrency exchange and reportedly saw success and expansion in domestic business last year. However, FTX’s collapse affected its liquidity, similar to most cryptocurrency exchanges in the world. 

Decenter added that Binance has been looking for a way to enter the Korean market but continues to face regulatory barriers and restrictions. The Korean regulatory agencies are keen to ensure that virtual asset providers prevent money laundering and protect investors.

Binance Is Expanding In Asia

With the acquisition of Gopax, Binance will now indirectly enter the South Korean market. The acquisition is expected to be a big deal as Binance could be looking to attract more investors and opportunities for domestic projects to expand internationally.

At the moment, neither Binance nor Gopax has commented on the acquisition. This latest development comes barely a month after Binance completed the acquisition of Japanese-based Sakura Exchange Bitcoin.

The acquisition allowed Binance to enter the Japanese market as a Japan Financial Services Agency (JFSA) regulated entity. At the time, Takeshi Chino, general manager of Binance Japan, said: 

“The Japanese market will play a key role in the future of cryptocurrency adoption. As one of the world’s leading economies with a highly-developed tech ecosystem, it’s already poised for strong blockchain uptake. We will actively work with regulators to develop our combined exchange in a compliant way for local users. We are eager to help Japan take a leading role in crypto.”