Crypto Exchange Binance Aiming to Buy South Korea’s Gopax

Crypto exchange Binance has almost completed its acquisition of South Korean exchange Gopax.

Binance has completed due diligence, is now in the final steps of the acquisition process and plans to buy a 41.2% stake from Gopax CEO Lee Jun-haeng, Decenter reported Monday (Jan. 2).

However, the acquisition still requires approval from Korean regulators, according to the report.

Gopax is one of the top five crypto exchanges in Korea, although the country’s leading exchange, Upbit, holds an 80% share of the market.

An acquisition would relieve Gopax from its current liquidity crisis brought on by the global economic slowdown and the collapse of FTX, and would allow Binance to enter the Korean cryptocurrency market after having run into regulatory roadblocks while trying to do so on its own, per the report.

Such a purchase would also help Gopax better compete with the country’s crypto market leader, as Binance lists about twice as many cryptocurrencies as Upbit.

Reached for comment, a Binance spokesperson told PYMNTS via email: “As a matter of policy, we do not comment on rumors or speculations.”

Korean financial authorities enforce strict requirements on all digital asset operators as they focus on standards around anti-money laundering (AML) and investor protection, the report said.

On Oct. 24, multiple media reports said that South Korea’s Financial Services Commission (FSC) was planning a probe into the amount of stablecoins being used on crypto exchanges.

This is part of a bid to stop money launderers, as financial authorities in the country consider stablecoins to be extremely susceptible to such uses, according to the reports.

Binance CEO Changpeng Zhao said Dec. 13 that the FTX implosion has brought on extra scrutiny for the crypto industry around the world, but that Binance will emerge stronger after what are likely to be a “bumpy” next few months.

“The good news is that, even though the news stories don’t always reflect it, we can answer the tough questions thrown at our business,” Zhao wrote at the time in a memo to Binance staff that was provided to PYMNTS.

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