Binance will launch a government crypto exchange in South Korea

The platform will be developed with the assistance of local cryptocurrency issuers and representatives of blockchain companies

28.02.2023 - 08:45

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2 min

What’s new? According to media reports, crypto exchange Binance is working jointly with Lee Woong-yeol, former chairman of Kolon, a chemical and textile products company, to create a virtual asset trading platform in South Korea. The exchange will be developed with the assistance of local cryptocurrency issuers and representatives of blockchain companies specifically for the country’s government and financial authorities.

The Korea Economic Daily’s material

What else is known about the initiative? Lee Woong-yeol has reportedly been working with South Korean and foreign blockchain and crypto industry representatives since he stepped down as Kolon chairman in November 2018.

If successfully launched, the exchange could compete with the trading platform Upbit, which owns 88% of the market and is effectively a monopoly in South Korea.

In early February, Binance bought a majority stake in the South Korean crypto exchange Gopax, which is experiencing a liquidity crisis. The deal was funded by the Industry Recovery Initiative fund, in which Binance invested $1 billion. Analyst Colin Wu later reported, citing media reports, that local regulators may review the deal. However, he allowed that it could be false information spread by competitors.

According to the Chosun Ilbo, after Binance acquired the South Korean exchange Gopax, regulators may require it to reapply for virtual asset operator certification; banks are considering whether to continue to provide accounts. But it could also be attacking information being… https://t.co/Xcgl3LwhA1 — Wu Blockchain (@WuBlockchain) February 23, 2023