Binance, a cryptocurrency exchange, is rumored to be ramping up its development strategy as it continues to acquire South Korean exchange Gopax.
The world's largest cryptocurrency trading platform, Binance, reportedly made the claim that Gopax, Korea's top-five trading platform, was about to be acquired at the same time on January 2 in the afternoon. Kimchi nation.
The platform will retain the exchange's current operating system while purchasing 41.2% of Gopax shares from CEO Lee Jun-haeng, according to the source. One of the top five cryptocurrency exchanges in South Korea is Gopax, which is also among the top five there with Upbit, Bithumb, Coinone, and Korbit. In regards to the transaction, both exchanges have declined to comment.
This is Binance's most recent attempt to enter the Korean market; earlier attempts were unsuccessful due to regulatory barriers. Due to its inability to comply with financial transparency, anti-money laundering, and investor protection rules, the company had to remove its Korea Branch sub-platform, which it had established to serve Korean consumers in 2020.
Upbit currently holds 80% of the market, although Gopax, a cryptocurrency exchange, has a presence in this region and has applied for a bank account there. Binance will probably restructure Gopax's operations by adding more fresh spot trading pairs, but it will be difficult to offer derivatives trading like margin or futures because Korean law forbids it.
The largest platform in the world also signed a deal to buy Sakura Exchange BitCoin in Japan and Tokocrypto in Indonesia in the final two months of 2022, two platforms that presently have operating permits in their respective nations. This arrangement mirrors the company's current strategy. Instead than starting from scratch and going through a license process that will undoubtedly be examined, Binance will enter the market by buying authorized businesses.
Following the FTX crisis, Binance announced the development of a $1 billion Market Relief Fund; however, there haven't been any new updates on the fund's status in over a month.