Binance, leading cryptocurrency
exchange, is making arrangements to finalize its acquisition of GOPAX, one of
the top crypto exchanges in Korea, blockchain media platform Decenter reports.
The exchange has conducted its due diligence in this regard and is
confirming other procedures, the outlet said.
According to the outlet, Binance intends to buy the 41.2% majority stake of CEO Lee Jun-Haeng in GOPAX. The outlet
also quoted an official as saying that the exchange initially intended to announce
the acquisition late last year.
Decenter further notes that the acquisition
comes at a time Gopax, which expanded its domestic business for the most of 2022, is facing a liquidity crisis in the fallout
of FTX’s collapse.
In addition, the report said Binance
had previously made attempts to gain entry into the Korean crypto market but
was hit by regulatory stumbling blocks. These included stricter restrictions from the country’s regulator on areas such as
money laundering and investor protection. However, both Binance and Gopax are yet to
officially confirm the news.
Korea’s cryptocurrency market is
currently dominated by Upbit. Other leading exchanges in the Asian country include Bithumb, Coinone and Corbitt. However, despite being in the top five,
GOPAX currently boasts of only a marginal 0.1% share of the market.
However, the report says industry
experts believe that there might be a turnaround in Gopax’s fortunes with Binance’s
indirect presence in the country.
Check out the recent Finance Magnates London Summit 2022 session on what trends will define crypto this year.
Binance Recent Acquisition in Japan
Meanwhile, in November last
year Binance acquired Sakura Exchange BitCoin, a Tokyo-originated crypto exchange
regulated by the Japanese Financial Services Agency. With the acquisition, the
exchange obtained its 12th regulatory license, adding to others acquired in countries such as France, Poland, Spain and Cyprus.
Takeshi Chino, the General Manager of
Binance Japan, during the announcement said the exchange wants to help Japan
take a leading role in the digital asset industry.
“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…
