Binance Returns to South Korea, Reshaping Crypto Landscape
Binance, a major global cryptocurrency exchange, is re-entering the South Korean market after an almost five-year absence. This move follows the Financial Intelligence Unit’s (FIU) approval of Binance’s acquisition of Gopax, one of a limited number of local exchanges authorized for crypto-to-fiat transactions.
Regulatory Clearances Pave the Way
The FIU’s final approval this week concludes a period of uncertainty surrounding Binance’s return. The exchange initially acquired a majority stake in Gopax in 2023, but the deal faced delays due to regulatory reviews and Binance’s legal challenges in the United States.
Potential Shake-Up for the Korean Market
Binance’s reentry could introduce new competition into South Korea’s cryptocurrency exchange sector, which has largely been dominated by Upbit and Bithumb. The country’s crypto regulations mandate that exchanges collaborate with domestic banks to provide real-name verified accounts. While intended to bolster Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, this system has historically posed a barrier for new entrants.
Digital Asset Developments in Japan
Meanwhile, in Japan, Morgan Stanley has partnered with a major Japanese bank to establish a new digital asset division. This collaboration signals a growing interest in the institutional adoption of digital assets within the region.
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