Binance has reportedly completed its long-awaited acquisition of Gopax, officially marking the crypto giant’s return to South Korea for the first time in over two years.
The approval from South Korea’s Financial Intelligence Service marks a pivotal moment for the country’s digital asset sector.
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Regulatory approval terminates Gopax acquisition
Efforts by Binance to acquire Gopax began in early 2023. As reported by the Mainichi Keizai Shimbun, the process was completed only after the Financial Intelligence Unit (FIU) approved the appointment of new executives. The decision ends nearly two and a half years of regulatory deadlock.
Binance, which holds a 67% stake in Gopax, controls one of the five crypto exchanges registered in South Korea. This move restores Binance’s presence after its exit in 2021 and strengthens its position in Asia’s increasingly regulatory environment. Binance is currently facing South Korea’s strict crypto asset user protection laws. The law establishes strict standards regarding digital asset custody, anti-money laundering controls, and user compensation.
The South Korean regulatory approval comes after a US case against Binance and its founders, which included a $4.3 billion anti-money laundering fine, was dropped. The completed transaction signals an enhanced compliance commitment that is expected to support the growth of digital assets in Korea and internationally.
Korean virtual currency market and its impact on the financial market
The acquisition of Gopax will have an immediate impact on South Korea’s digital financial landscape. This change could lead to other global players such as Coinbase acquiring Korean licenses, increasing competition in the domestic market.
According to CoinGecko, Upbit and Bithumb dominate the South Korean crypto exchange market, accounting for 63% and 32% of trading volume as of Thursday. These two exchanges account for 95% of all crypto trading activity in the country.
Although Gopax’s trading volume remains small, all eyes are on how much market share Binance will gain in the Korean market, which is known for its high retail trading volume.
