Binance Returns to South Korea, Reshaping Crypto Landscape
Binance, a major cryptocurrency exchange, is re-entering the South Korean market. This move comes almost five years after its initial departure in 2020. The return follows regulatory approval for its acquisition of Gopax, one of a select few local exchanges authorized for crypto-to-fiat services.
Regulatory Hurdles and Approval
The Financial Intelligence Unit (FIU) reportedly granted final approval for the acquisition. This decision concludes over two years of regulatory review regarding Binance’s reentry. Binance initially acquired a majority stake in Gopax in 2023. However, the deal faced delays due to regulatory scrutiny and legal challenges for Binance in the United States.
Potential Market Impact
Binance’s return could significantly alter South Korea’s cryptocurrency exchange market, long dominated by Upbit and Bithumb. The country’s regulations mandate that exchanges partner with a domestic bank to offer real-name verified accounts. This system, designed to enhance Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, has historically created barriers for new market entrants.
Morgan Stanley and Japan’s Digital Asset Venture
In related news from Asia, Morgan Stanley is collaborating with Japan’s largest bank on a new digital asset division.
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