Binance Acquires 40% of Gopax to Enter Korean Coin Exchange Market

Binance acquired 40 percent of Gopax, the fifth-largest cryptocurrency exchange in South Korea, early this month as a preparation to enter the South Korean market. According to industry sources, the South Korean government is likely to put the brakes in that adequate supervision is not easy. At present, most data and information on Binance are confidential, including its governance structure and financial information.

The world’s largest cryptocurrency exchange is already being regulated by multiple financial authorities. For example, the New York State Department of Financial Services told Paxos Trust Company on Feb. 13 to stop issuing the stable coin of Binance. In addition, Reuters reported on Feb. 17 that it is under investigation in the United States for money laundering allegations.

Some in the industry point out that the South Korean government should not block it. “With UPbit monopolizing the market as the largest cryptocurrency exchange in South Korea, another major player such as Binance can be helpful in trying to make the market closer to normal,” one of them said.

UPbit’s current market share is over 88 percent. The second and third in the market are Bithumb and Coinone and their combined market share is 10 percent or so. Korbit is the fourth and its market share is less than 1 percent.