One of the top five South Korean cryptocurrency exchanges, Gopax, is reportedly close to being acquired by Binance.
According to reports, Binance has finished the required due diligence for the purchase of Gopax and is now finalizing the agreement.
The announcement of the acquisition was initially scheduled for around Christmas last year, but final negotiations on the stake’s worth are still ongoing, according to the South Korean cryptocurrency news portal Decenter.
It is known that Binance will buy a 41.2% stake in Gopax from CEO Lee Jun-haeng, the company’s largest stakeholder, but that the management team would remain in place to ensure steady business operations.
One of the top five exchanges in South Korea is Gopax, and with Binance on its side, it may be able to challenge Upbit for supremacy.
Upbit now has fierce competition.
Due to the legislative restrictions in place, Binance has not yet been allowed to immediately access the Korean market.
For Binance, acquiring Gopax, which offers settlement in won, would be quite beneficial.
Upbit has had an almost unrivaled 80% market share in South Korea’s cryptocurrency sector up until now, but things would likely change significantly if Binance entered the market.
If the majority of the 350 cryptocurrencies on Binance were to be added to Gopax, the selection offered by Upbit would increase by double.
According to the Decenter report, entering not only the South Korean market but also the whole East Asian market would be a big benefit for Binance.
Everything is still in flux.
However, as Binance and Gopax have not yet finalized their agreement, all of this is now merely speculative.
The deal’s approval by the South Korean regulatory body may also provide a problem.
Binance has recently faced some challenges after its auditing firm Mazars withdrew from the Binance proof-of-reserves audit. This led to a significant amount of FUD from both inside and outside the crypto industry, who feel that Binance still needs to do more to demonstrate the transparency and trust required by such a significant player in the market.