Binance reported to re-enter South Korea soon with the acquisition of Gopax, one of the largest exchanges in the country. The community fears it will hurt crypto, even more when Binance goes down.
Binance is reportedly acquiring South Korean exchange Gopax, while Hong Kong plans to give retail investors exposure to cryptocurrencies. South Korean publication Decenter reported that Binance has completed due diligence to acquire Gopax. It is one of the largest stock exchanges in South Korea. The takeover was supposed to be announced before Christmas, but was delayed due to final valuation talks.
Binance ceased operations in South Korea in January 2021 due to low usage and low transaction volume. The exchange has also faced regulatory challenges from local authorities. The exchange, run by Changpeng Zhao, attempted to re-enter the market but was not given a green flag to enter the market directly due to issues such as money laundering and investor protection. However, the team reportedly found a way out by acquiring a 41.2 percent stake from Gopax’s largest shareholder, Lee Jun-hang.
With Binance on an aggressive takeover spree, the community fears that if the stock market falls, it will hurt the cryptocurrency and more. There is negative sentiment between Changpeng Zhao and Binance.
Hong Kong Plans to Widen Trading to Retail Investors
Hong Kong regulators plan to expand cryptocurrency trading to retail investors. According to the South China Morning Post, the Securities and Futures Commission (SFC) will explore ways to allow retail investors to participate in virtual asset trading.
With this development, the growth of Hong Kong retail investor exposure to cryptocurrencies could skyrocket. Brokers and money managers are preparing to woo the biggest retail investors. Robert Lui, Head of Digital Assets at Deloitte Hong Kong said that they have seen many local brokers and fund managers come to them for advice on licensing requirements under the new regulatory regime.