Binance Returns to South Korea, Reshaping the Local Crypto Landscape
Binance, a major global cryptocurrency exchange, is re-entering the South Korean market. This move comes almost five years after its initial departure, marking a significant development for the region’s crypto sector.
The Financial Intelligence Unit (FIU) recently approved Binance’s acquisition of Gopax, one of a limited number of local exchanges authorized for crypto-to-fiat services. This approval, as reported by the Maeil Business Newspaper, concludes a two-year period of regulatory review.
Binance’s acquisition of a majority stake in Gopax in 2023 faced delays due to regulatory scrutiny and the exchange’s legal challenges in the United States.
Potential Market Shift and Regulatory Environment
The return of Binance could introduce new competition to South Korea’s crypto market, which has long been dominated by exchanges like Upbit and Bithumb.
Korean crypto regulations require exchanges to partner with a domestic bank to offer real-name verified accounts. This system, while enhancing anti-money laundering (AML) and know-your-customer (KYC) compliance, has historically presented barriers for new market entrants.
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