Binance Returns to South Korea, Reshaping Crypto Landscape
Binance, the world’s largest cryptocurrency exchange, is re-entering the South Korean market. This significant move comes nearly five years after its initial departure. The Financial Intelligence Unit (FIU) recently approved Binance’s acquisition of Gopax, one of a select few local exchanges authorized for crypto-to-fiat services.
This approval concludes over two years of rigorous regulatory review. Binance had acquired a majority stake in Gopax in 2023, but the deal faced delays due to intense regulatory scrutiny and the exchange’s legal challenges in the United States.
Impact on the South Korean Market
Binance’s highly anticipated return is poised to disrupt the current market structure. The South Korean crypto exchange landscape has long been dominated by a powerful duopoly of Upbit and Bithumb.
Under strict Korean regulations, exchanges must collaborate with a domestic bank to offer real-name verified accounts. This meticulous system, specifically designed to enhance Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, has historically presented significant hurdles for new entrants. The re-establishment of Binance’s presence through Gopax could introduce new competition and dynamic forces to this tightly controlled and established market.
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