Binance makes plans to complete the acquisition of South Korea’s Gopax exchange
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Binance, the largest cryptocurrency exchange by trading volumes, plans to close the acquisition of Gopax. Gopax is one of the largest cryptocurrency exchanges in South Korea, and the closure of this acquisition deal will see Binance securing a significant share of the South Korean market.
Binance makes plans to complete the Gopax acquisition
The Binance exchange notes that it has completed due diligence on the matter, and it is also working on other procedures that will see the acquisition deal closed soon. A report by Decenter said that the Binance exchange was planning to acquire the majority stake at the Gopax exchange.
The Gopax exchange is 41.2% owned by its CEO, Lee Jun-Haeng. An official from the exchange had earlier said that it initially planned to close the acquisition deal towards the end of last year.
The Decenter report also says that the acquisition comes at a time when the Gopax exchange had expanded its reach in the domestic market. Gopax was focused on this expansion for most of 2022, but it later faced a liquidity crisis after the FTX exchange filed for bankruptcy.
The report also notes that Binance has attempted to expand into the Korean cryptocurrency market. However, its expansion in the Korean market was affected by the regulatory environment in the country. The South Korean regulator included strict restrictions on multiple areas, such as money laundering and investor protection. The Binance and Gopax exchanges have yet to confirm the news on the acquisition.
The Upbit exchange currently dominates the South Korean crypto market. There are other major exchanges in the country, such as Bithumb, Coinone, and Corbitt, with Gopax only accounting for a minimal 0.1% market share. The report notes that the Binance acquisition deal could boost Gopax’s presence in the country.
Binance expands to the Japanese market
In November last year, Binance closed the acquisition of Sakura Exchange BitCoin. The latter is an exchange regulated by the Japanese Financial Services Agency. With this acquisition, Binance received its 12th regulatory license. Binance has a vast global presence, with multiple licenses in Europe.
When announcing the closure of this acquisition deal, the General Manager of Binance Japan, Takeshi Chino, said that the exchange wanted to help Japan take a leading role in the cryptocurrency industry.
Chino noted that the Japanese market could play a key role in driving the adoption of cryptocurrencies in the future. Japan is one of the largest economies globally and boasts significant tech adoption. Therefore, the market was ready for solid blockchain adoption. The executive added that Binance would work with regulators to achieve compliance.
