Binance, the world’s largest cryptocurrency exchange, has completed its long-delayed acquisition of South Korean crypto exchange Gopax, marking its foray into the country. The move is expected to shake up the domestic crypto market long dominated by Upbit and Bithumb.
According to financial authorities on Wednesday, the Financial Intelligence Unit (FIU) on Wednesday granted final approval of Binance’s purchase of a majority stake in Gopax.
In February 2023, Binance purchased a 67% stake in Gopax. However, the FIU had withheld approval for the deal for more than two years amid concerns surrounding Binance’s legal troubles in the US and potential anti-money laundering risks.
In June 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance, accusing it of offering unregistered services to American users and misusing customer funds.
Since then, Binance has reached settlements with US authorities and replaced its chief executive officer, easing much of its regulatory burden and paving the way for the FIU’s approval this week.
Industry insiders say Gopax is now expected to serve as Binance’s Korean hub, leveraging its parent company’s liquidity, technology and global network.
Under Binance’s wing, Gopax will be able to offer won-denominated deposit and withdrawal services on a stable basis, while stepping up efforts to compensate customers affected by losses related to Gopax’s GoFi products.
GoFi, an interest-bearing crypto deposit product, suspended withdrawals in 2022 following the collapse of FTX, a leading crypto exchange.
Analysts say Binance’s massive liquidity and global trading infrastructure could reshape South Korea’s crypto landscape, where Upbit and Bithumb currently control more than 96% of total trading volume. Upbit alone has at times captured over 80% of the market.
“The arrival of Binance could spark renewed competition among domestic exchanges,” said one industry official. “However, the opacity of its global governance and internal control systems remains a key risk factor.”
By Byung-yeon Yoo
yooby@hankyung.com
