Binance in talks to acquire stake in South Korean exchange Gopax
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Illustration: Brendan Lynch/Axios
Global crypto exchange Binance is finalizing a deal to acquire a stake in Gopax, one of just a handful of digital asset exchanges approved to operate in South Korea, according to local crypto news site Decenter.
Why it matters: Owning a piece of Gopax could once again give Binance, the world’s largest crypto exchange by transaction volume, access to the highly coveted South Korean crypto market.
Driving the news: Binance has recently completed due diligence and is close to acquiring a 41.2% stake in the exchange from Gopax CEO Lee Jun-haeng, according to the report.
- The deal was originally expected to be completed around Christmas last year, and the parties are now in final discussions on the value of the deal.
Of note: Gopax is one of five exchanges approved to provide won-to-crypto services in South Korea following the release of strict regulatory guidelines effected in 2021.
- It got that approval after striking a banking deal with Joenbuk Bank, which provides accounts for Gopax customers.
Yes, but: Gopax is also one of many exchanges affected by the fallout of FTX and the subsequent liquidity crunch rippling through the industry.
- It halted withdrawals from its GoFi decentralized finance service, which was brokered by crypto lender Genesis Global Capital, after GGC ended redemptions and new loan originations.
Flashback: If the deal goes through, it will mark Binance’s second attempt at operating in the South Korean market.
- The firm opened a Korean office in 2019 and began offering crypto trading services there in April 2020, before abruptly closing operations in December of that year.
- At the time, the company cited “low usage and volume,” along with limited trading of BKRW, its South Korean won-backed stablecoin.
- But Binance chief executive Changpeng “CZ” Zhao has expressed interest in re-entering the market, saying in November that the firm was preparing to register under South Korean financial authorities and comply with local regulations.
