Binance reportedly finalizing acquisition Korean crypto exchange Gopax
Summary
It is believed that the deal was originally set to be announced in 2022 but was delayed due to consultations over equity value calculations. Binance purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company. However, it is reported that Binance plans to “maintain this representative system for the time begin for stable management.” Gopax is one of five major South Korean exchanges and reportedly saw success and expansion in domestic business through 2022 until hitting a liquidity crisis as a result of the FTX bankruptcy, according to Decenter. Decenter report that Binance has sought entry into the Korean market but has faced regulatory barriers and restrictions on virtual asset service providers in order to prevent money laundering and protect investors. The acquisition is expected to significantly change the composition of the Korean cryptocurrency market, as Binance and Gopax will bring more options for investors and opportunities for domestic projects to expand internationally.