According to local news reports, Binance is partnering with Lee Woong-yeol, the honorary chairman of Kolon, for a new virtual asset exchange in South Korea. According to sources, Lee intends to create a joint venture with Binance to build an exchange for the government and financial authorities.
Furthermore, local blockchain firms focused on logistics and virtual asset issuers are reportedly aiding Lee in establishing the exchange. Lee has spoken to local and international virtual asset and blockchain businesses for around three years.
In a letter to executives and employees at the time of his retirement, Lee noted the importance of blockchain technology. However, he said that he was not sure what the technology was.
If the Binance partnership is approved, the domestic virtual asset exchange industry may face significant change. Moreover, the new exchange may rival Upbit, which holds an 88% market share and effectively controls the market.
Is Binance betting for adoption in South Korea?
Recently, Binance reentered South Korea after two years by acquiring the Digital Currency Group-backed firm, Gopax. The Industry Recovery Initiative, a finance-initiated investment project to which Binance committed $1 billion, provided the cash for the transaction. Nonetheless, the deal is currently being examined by South Korean officials.
Without revealing the specifics of the transaction, Chief Business Officer Yibo Ling reportedly said that the exchange bought a substantial position at Gopax. However, prior reports stated that Binance acquired a 41% stake from Lee Jun-hang, the major shareholder of Gopax. News about the purchase came after Gopax halted withdrawals from certain products after the collapse of FTX.
The world’s largest exchange has recently found itself in a tight situation after regulators scrutinized its stablecoin issuer, Paxos. Furthermore, Binance.US is attempting to acquire the bankrupt cryptocurrency firm, Voyager. However, the exchange is also facing opposition from regulators on that front.