Binance Set to Acquire Top Korean Crypto Exchange: Report

Lavina Daryanani
Source: Binance

Binance, the world’s largest crypto exchange, has reportedly completed the due diligence necessary for the acquisition of Gopax. The organization is one of the top 5 exchanges in South Korea. If the deal materializes, it will open the doors for Binance to re-enter the South Korean market.

Back in August 2021, Binance decided to pull the plug on the trading pairs associated with the South Korean Won. In addition to this, all things South Korean were removed from the exchange. Prior to that, the exchange announced that it would terminate its operations in South Korea due to low volume and usage in 2020.

Read More: South Korea is now on the Binance expansion radar? Details

How Things Could Change For Binance and Gopax?

An unnamed “official” familiar with the industry recently told Deceter,

“We originally planned to announce the acquisition around Christmas last year, but we are in the process of final discussions on the value of the stake.”

Binance is reportedly set to buy a 41.2% stake from CEO Lee Jun-haeng, the largest shareholder of Gopax. The South Korean crypto exchange is overshadowed by Upbit. The report noted that if Binance launches an aggressive marketing campaign with Gopax at the forefront, a significant change in perception could occur.

With respect to the said acquisition, Binance declined to give an official answer to Decenter. On the other hand, Gopax said,

“We cannot confirm the facts.”

Last year, Gopax started expanding its domestic market. However, it was hit by a liquidity crisis due to the rough bear market conditions. It was further amplified by the collapse of FTX.

On the other hand, South Korea has been on Binance’s expansion radar over the past few months. In mid-2022, Changpeng Zhao hinted at the re-entry into the region. Now by mutually tying up, the firms could help each other for growth expansion.

Chalking out how the “story will change” post the acquisition, Decenter’s report noted,

The industry believes that if Binance enters the domestic market in earnest, it will shake the cryptocurrency market itself. In Korea, the five major exchanges that support the won market move the market, but Upbit, with a market share of over 80%, is unrivaled. Gopax’s market share is currently a meager 0.1%, but if Binance and Gopax share an order book (trading order book), the story will change.

Also Read: Binance CEO Says the Exchange is “Financially Strong”