Binance Returns to South Korea, Reshaping Crypto Landscape
Binance, the world’s largest cryptocurrency exchange, is re-entering the South Korean market. This move comes nearly five years after its initial departure and follows regulatory approval for its acquisition of a majority stake in Gopax. Gopax is one of only five South Korean exchanges authorized to provide crypto-to-fiat services.
Regulatory Hurdles Cleared
South Korea’s Financial Intelligence Unit (FIU) recently granted final approval for Binance’s acquisition of Gopax. This decision concludes over two years of regulatory review, during which the deal faced scrutiny due to Binance’s legal challenges in the United States.
Impact on South Korean Crypto Market
Binance’s return is poised to significantly impact South Korea’s cryptocurrency market. The landscape has long been dominated by Upbit and Bithumb. The re-entry of a major global player could intensify competition and introduce new dynamics.
The Challenge of Market Entry
South Korean crypto regulations mandate exchanges to partner with a domestic bank for real-name verified accounts. While designed to bolster Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, this requirement has historically created barriers for new entrants.
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