According to a report by Decenter, Binance has completed due diligence on Gopax. The local government has proven to be a big challenge for the product exchange to solve in the country. After achieving success, Binance’s prospects of entering the regional market in East Asia will increase.
The acquisition will have a significant impact on the local cryptocurrency market. Binance, the world’s largest crypto exchange, has been focusing on the Korean market for some time.
The agreement with Gopax is the continuation of the expected big change. Gopax is one of the top five crypto exchanges (Upbit, Bitsum, Coinone, Corbit, and Gopax) in South Korea. The change was said to have been successful in the region during its initial phase but, later in 2022, there was a water shortage when FTX stopped. Exchange services are not available to non-Koreans due to laws that prevent non-foreigners from exchanging crypto issued by companies resident in the country.
Binance works with Gopax proper. According to the report of Decenter, the big change has lost the proper care in the change. They will announce Christmas but postpone the review of participation pending. The exchange will buy a 41.2% stake in the exchange from the exchange’s largest shareholder, its CEO Lee Jun-haeng.
The reform’s biggest obstacle to entering the Korean market is the strict regulatory framework required by its investors. Acquiring a Korean exchange is a task that has a high chance of success.
The exchange reportedly used similar tactics to enter the US market by creating Binance.US for citizens of the country. Upbit exchange dominates the Korean crypto market; changes in the market will show that it should be considered the importance of capital.
Upbit controls 80% of the overall market, while the Korean exchange maintains a small 0.1%. Due to the recent failure of Terra Luna and the controversy over the distribution of Wemix, we are setting up a strict listing policy, based on Daxa (the advisory body of the five exchanges), if Binance participates in Daxa through with Gopax, they can relax. registration requirements.
The acquisition is not the first attempt to enter the Korean market. The exchange has previously established Binance Korea and acquired a stake in cryptocurrency exchange Sakura.
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Both exchanges have yet to release an official statement about the acquisition. Impact and availability
If it is acquired, the main exchange will have a better chance to enter the regional market in East Asia. This acquisition will also allow the country’s market to expand for foreign investment. Upbit will have a candidate who can beat them over time. The exchange has a large capitalization with over 350 listed cryptocurrencies which is more than Upbit, which has half that. Both of these factors are causing investors to jump ship.
Analysts suggest that Binance’s entry into the country will have a significant regulatory impact. Daxa will loosen listing standards as the exchange expands its market share, and other exchanges may try to cover other stocks to face competition.
The involvement of Binance will raise the discussion of the process. Local stock exchanges often operate in the spot market; On the other hand, Binance offers various investments, such as futures. Under Korean law, handing over procedures between exchanges is difficult, said Kwon Oh-hoon, a managing attorney at the law firm Cha & Kwon.
Binance’s entry into the Korean market seems like a real investment; However, it should be noted that they still have to overcome many obstacles from the authorities to solve.
Final Thoughts
Since the FTX failure, Binance has released how the exchange should work; By harnessing this power, the revolution has a significant chance of moving forward. Binance has a growing network of investments around the world, which raises questions about the impact it will have if a disaster like FTX happens.
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