Media report on Binance’s plans to buy South Korean crypto exchange Gopax

The exchange will buy a 41,2% stake from the current Gopax CEO Lee Jun-Haeng

03.01.2023 - 10:45

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What’s new? According to Decenter, crypto exchange Binance has completed due diligence as part of a deal to buy South Korean trading platform Gopax. The deal was originally scheduled to be announced in 2022 but was delayed due to consultations over the share price calculation. Binance will buy the stake of Gopax’s largest shareholder Lee Jun-Haeng, who owns 41,2% of the securities.

Decenter’s material

What else does the publication report? Gopax is one of South Korea’s five major exchanges and had been expanding its business until 2022 when it faced a liquidity crisis following the collapse of the FTX trading platform.

Decenter reported that Binance sought to enter the Korean market, but faced regulatory barriers and restrictions imposed on virtual asset service providers to prevent money laundering and protect investors. The purchase of Gopax will allow Binance to indirectly enter the market.

The purchase 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 enter the international market. However, the Binance and Gopax initiatives could also lead to increased competition and market fluctuations, Decenter reports.

Earlier, CoinDesk Indonesia reported that Binance bought Tokocrypto, one of Indonesia’s largest cryptocurrency exchanges. Tokocrypto’s leadership was reshuffled in connection with the deal, and the company also significantly reduced the number of employees.

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