Binance is reportedly taking the final steps in acquiring Korea-based crypto exchange Gopax.
Binance is completing due diligence (DD) on the acquisition and finalizing the process, according to Decenter.
It is believed that the deal was originally set to be announced in 2022 but was delayed due to consultations over equity value calculations.
Binance purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company. However, it is reported that Binance plans to “maintain this representative system for the time begin for stable management.”
Gopax is one of five major South Korean exchanges and reportedly saw success and expansion in domestic business through 2022 until hitting a liquidity crisis as a result of the FTX bankruptcy, according to Decenter.
Decenter report that Binance has sought entry into the Korean market but has faced regulatory barriers and restrictions on virtual asset service providers in order to prevent money laundering and protect investors. The acquisition of Gopax allows Binance to indirectly enter the market.
The acquisition is expected to significantly change the composition of the Korean cryptocurrency market, as Binance and Gopax will bring more options for investors and opportunities for domestic projects to expand internationally.
However, the entry of Binance and Gopax into the market could also lead to increased competition and market fluctuations, according to Decenter.
As of press time, neither Binance nor Gopax have commented on the acquisition.