Binance is said to be wrapping up the acquisition of Gopax, one of the top five South Korean cryptocurrency exchanges.
Final discussions underway
Binance has reportedly completed due diligence for the acquisition of Gopax and is in the process of finalising the deal. According to the South Korean crypto news platform Decenter, the announcement of the acquisition was originally planned for around Christmas of last year, but final discussions on the value of the stake are still underway.
It is known that Binance will be purchasing a 41.2% stake in Gopax from CEO Lee Jun-haeng, the largest shareholder, but will maintain the current management structure for the continuance of stable operations.
Gopax is one of the five biggest exchanges in South Korea, and with Binance behind it, it could challenge the dominance of the number one exchange Upbit.
Upbit faces new stiff competition
Up till now, Binance has not been able to enter the Korean market directly due to the regulatory barriers in place. The acquisition of Gopax, which has Won-denominated settlement, would make things a lot easier for Binance.
Upbit’s 80% share of the South Korean crypto market has been pretty much unrivalled up to this point, but with Binance entering the space things would likely be shaken up quite a bit.
Binance lists 350 cryptocurrencies, and should most of these be added to Gopax then it would double the offering that Upbit is currently providing.
According to the Decenter article, another huge plus for Binance would be the entry, not only into the South Korean market, but also into the entire East Asian market.
All still up in the air
However, all this is just conjecture at the moment, given that Binance and Gopax have still not signed the deal. Also, another potential issue could be the South Korean regulatory authority’s seal on the deal.
Binance has gone through some tough times recently after its auditing company Mazars distanced itself from the Binance proof-of-reserves audit, and a huge amount of FUD was experienced from those in and outside of the cryptocurrency sector who believe that Binance still has some way to go in order to display the necessary transparence and trust needed by such a huge player in the space.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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