Regulators Blink — Binance Reclaims Korea With Gopax Deal

Binance has reportedly completed its long-awaited acquisition of Gopax, officially marking the crypto giant’s return to South Korea after over two years.

The approval from South Korea’s Financial Intelligence Unit represents a pivotal moment for the nation’s digital asset sector.

Regulatory Sign-Off Unlocks Gopax Takeover

Binance’s effort to acquire Gopax began in early 2023. As reported by Maeil Business Newspaper, the process concluded only after the Financial Intelligence Unit (FIU) approved new executive appointments. This decision ended a roughly two-and-a-half-year regulatory stalemate.

With a 67% stake in Gopax, Binance controls one of South Korea’s five registered crypto exchanges. This move restores Binance’s presence after its 2021 exit and bolsters its position in Asia’s increasingly regulated environment. Binance now faces South Korea’s strict Virtual Asset User Protection Act. This act sets tough standards for digital asset custody, anti-money laundering controls, and user compensation.

Korean regulatory approval came after US lawsuits against Binance and its founder were dropped, including a $4.3 billion anti-money laundering fine. The completed deal signals enhanced compliance efforts expected to support South Korean and international digital asset growth.

Impacts on Korea’s Crypto and Financial Markets

The Gopax acquisition has immediate effects on South Korea’s digital finance landscape. This shift could attract other global players, such as Coinbase, to pursue Korean licenses, increasing competition in the local market.

According to CoinGecko, Upbit and Bithumb dominate the South Korean cryptocurrency exchange market, capturing 63% and 32% of trading volume as of Thursday. These two exchanges account for 95% of the country’s total crypto trading activity.

While Gopax’s trading volume remains minor, all eyes are on how much market share Binance will capture in the Korean market, which is renowned for its high retail trading volume.