- According to reports, Binance, the top cryptocurrency exchange in the world, has finished the due diligence required to buy Gopax.
- The Gopax CEO and largest shareholder, Lee Jun-Haeng, will sell a 41.2% interest to the CZ-led exchange.
Binance is nearing completion of the acquisition of the Korean cryptocurrency exchange Gopax as per a report published by Decenter. The company ranks among South Korea’s top 5 exchanges. Binance will be able to reenter the South Korean market if the purchase goes through.
According to a representative with knowledge of the situation, the transaction was supposed to be announced around Christmas but was postponed because of final negotiations.
The founder, CEO, and largest shareholder of Gopax, Lee Jun-haeng, is reportedly selling his stock to Binance in order to complete the acquisition. Lee holds a 41.2% stake in Gopax. For the moment, Lee is anticipated to continue leading the business in order to guarantee a smooth handover and administration.
This turned out to be the most secure path because Binance has been aggressively investigating the Korean market.
Binance began operating in South Korea in 2020, but because of legal challenges, it stopped offering trading pairs and payment methods utilizing the Korean won in August 2021. The purchase of Gopax will allow access to the Korean cryptocurrency market once more.
Upbit dominates South Korean, and Gopax still remains one of the top 5 most prominent exchanges. A dramatic shift in opinion might take place, according to the report, if Binance conducts an effective marketing effort with Gopax at the frontline.
It is anticipated that the structure of the local cryptocurrency exchange, which is anchored by other renowned exchanges like Upbit and Bitsum, will alter dramatically when Binance, which has considerable capital, attempts a sideways entry into the local cryptocurrency market.
In particular, it is examined that native investors’ investment options are expanded and local projects can more readily move abroad thanks to the connection between Binance and Gopax.
Regarding the aforementioned deal, Binance refuses to provide Decenter with a formal response. Gopax, on the other hand,
“We are unable to verify the facts.”
For reasons including investor protection and anti-money laundering, South Korean financial authorities have severe rules for overseas operators of virtual assets. Following the Terra-LUNA incident, crypto firms must adhere to extremely tight rules in addition to routine inspection.