Binance is now finalizing the purchase of Gopax, a South Korean cryptocurrency exchange that suffered liquidation as a result of the FTX crisis.
The acquisition is aimed at increasing the opportunities available to South Korean local exchanges and bringing them into the global scale.
Binance’s Deal With South Korean Exchange
With Binance completing its due diligence on the acquisition of this South Korean exchange, a deal that was mediated between Binance and the South Korean exchange Gopax now nears a close.
Due to delays with the equity compliance, this deal, which had been in the works since 2022, was not announced last year.
A stake in Gopax exchange was sold to Binance in 2022 by Lee Jun hang, who is thought to be the exchange’s top shareholder and possesses over 40% of the business.
However, it is said that even after completing the acquisition, Binance intends to keep the firm’s previous operations the same for the time being.
During the year 2022, up until the FTX crisis, this South Korean exchange experienced significant growth and success rates, making it one of the leading exchanges.
The exchange grew and had success rates prior to the FTX collapse. However after the crash, it experienced severe impact and liquidation causing it to plummet.
Benefits Of This Deal
Binance sought ways to assist this exchange after learning of its liquidation crisis, but was hampered by regulatory impediments and limits on Virtual Asset Providers in the country.
These restrictions were implemented to reduce the risk of money laundering and theft on South Korean soil.
This acquisition, however, gives Binance an indirect access to the South Korean market.
This collaboration and acquisition aims to increase chances for investors in South Korea while also changing several elements in the South Korean market.
This will also allow local projects to grow and develop globally.
On the negative side, Binance’s acquisition and entry into the market will create a stir, leading to increased competition among other important players in the sector, increased volatility, and price changes, to name a few.
The public is yet to receive an official announcement of this acquisition from Binance and the Gopax exchange.
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