Crypto exchange Binance has planned to buy Korea’s Gopax.
Binance is in the final stages of the acquisition process, having only to complete due diligence (DD) on the purchase. Initial rumors spoke about the deal being set to be introduced to the public in 2022. However, the announcement was postponed because consultations on equity value were not complete.
Previously, the crypto exchange bought a stake from the largest shareholder of Gopax. Lee Jun-hang owned 41.2 per cent of the Korean crypto exchange. Moreover, for reasons of management stability, Binance doesn’t intend to disrupt the process, planning to keep the representative system incorporated in the Korean business.
In South Korea, Gopax takes one of the 5 leading seats when exchanges are concerned. In 2022, it reported success in its global and domestic affairs. However, as an effect of FTX going bankrupt, Gopax encountered a crisis with liquidity. Previously, Binance’s efforts to expand to Korea were met by barriers from the regulators and crypto service providers restrictions as the Asian country has strict AML laws and tries to take care of investors. Binance hopes that by acquiring Gopax it can finally enter Korea’s user base.
The crypto market in Korea is expected to be affected by Binance’s local emergence. Together with Gopax, the crypto exchange will allow investors to find more possibilities and domestic projects will find it easier to expand globally.
On the other hand, crypto experts argue that the Binance entry could disrupt the market which will volatilize the market and increase competition.
