Cryptocurrency

Binance reportedly finalizing acquisition Korean crypto exchange Gopax

Hull Invest

Binance is reportedly in the final stages of acquiring South Korea-based cryptocurrency exchange Gopax.

Binance has completed due diligence (DD) on the acquisition and is finalizing the process. Eccentricity.

It was originally scheduled to be announced in 2022, but is believed to have been postponed due to talks over equity valuation.

Binance has purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company. However, Binance reportedly plans to “maintain this representation system for the time being when stable operations begin.”

According to Decenter, Gopax, one of South Korea’s five major exchanges, reportedly saw success and expansion in its domestic operations through 2022, before suffering a liquidity crisis as a result of FTX’s bankruptcy. increase.

Decenter reports that Binance is seeking to enter the South Korean market but is facing regulatory barriers and restrictions on virtual asset service providers to prevent money laundering and protect investors. I’m here. The acquisition of Gopax gives Binance an indirect market entry.

The acquisition is expected to significantly change the composition of the South Korean cryptocurrency market, as Binance and Gopax will bring more options for investors and opportunities for domestic projects to expand internationally.

However, Binance and Gopax’s entry into the market could also lead to increased competition and market volatility, according to Decenter.

At the time of writing, neither Binance nor Gopax have commented on the acquisition.

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