Binance Re-Enters South Korean Market

According to a January 2 article by Decenter.kr, Binance has acquired Gopax, marking its official entry into the South Korean market. After leaving South Korea in January 2021, Binance CEO Changpeng "CZ" Zhao was eager to make a return. Binance still sees South Korea as a promising market, as it is home to one of the world's largest crypto economies, a large and diverse talent pool, and a thriving startup community. Moreover, the company's planned expansion into South Korea is crucial to Binance's goal of becoming a market leader in the next generation of blockchain and web3 technologies.

Binance has finished its research into the proposed purchase of Gopax. Final negotiations have begun as Binance seeks to acquire a majority stake in Gopax from CEO Junhaeng Lee, who currently owns 41.2% of the company.

“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,” said a Binance official.

The South Korean financial authorities have stringent requirements for foreign virtual asset operators for anti-money laundering and investor protection. Since the Terra-LUNA incident, the crypto industry has been subject to increased regulation and frequent audits. Upbit has an 80%+ share of the South Korean cryptocurrency market. While Gopax currently holds a larger market share, Binance's entry into the market could shift that.

In 2022, Binance made significant inroads into new markets across Europe and Southeast Asia. Binance acquired the Sakura Exchange BitCoin on November 30, 2022, marking its debut in the Japanese market (SEBC). Also, in December, it bought the Indonesian cryptocurrency exchange Tokocrypto.