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 December 2020. The Financial Intelligence Unit (FIU) recently approved Binance’s acquisition of Gopax, a local exchange.
The Path to Re-entry
Gopax is one of only five South Korean exchanges authorized to process crypto-to-fiat transactions. This approval from the FIU follows a period of over two years of regulatory review. Binance had acquired a majority stake in Gopax in 2023, but the deal faced delays due to regulatory scrutiny and legal challenges for Binance in the United States.
Market Impact and Regulatory Environment
Binance’s return is poised to introduce new competition to the South Korean crypto market. Currently, Upbit and Bithumb have largely dominated the sector. South Korean regulations require cryptocurrency exchanges to form partnerships with domestic banks to offer real-name verified accounts. While this system aims to bolster Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, it has historically created barriers for new entrants.
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