Binance is reportedly acquiring Gopax, a South Korean exchange, while Hong Kong plans to allow crypto exposure to retail investors.
Decenter, a South Korean publication, reported that Binance completed due diligence to acquire Gopax. It is one of the largest exchanges in South Korea. The acquisition was supposed to be announced before Christmas, but it was delayed due to final discussions on valuations.
Binance Plans to Re-Enter South Korea
Binance wrapped up its business from South Korea in Jan. 2021 due to low usage and volumes. The exchange also faced regulatory challenges from local authorities.
The Changpeng Zhao-led exchange was trying to re-enter the market but didn’t receive a regulatory green flag for direct entry due to concerns such as money laundering and protecting investors. But the team found its way around by reportedly acquiring a 41.2% stake from Lee Jun-hang, the largest shareholder of Gopax.
With the aggressive acquisition spree from Binance, the community fears it will hurt crypto, even more, when the exchange goes down. There is a negative sentiment for Changpeng Zhao and Binance.
Hong Kong Plans to Widen Trading to Retail Investors
The Hong Kong Regulatory Authorities plans to expand crypto trading to retail investors. According to South China Morning Post, the Securities and Futures Commission (SFC) will explore how to allow retail investors access to trading in virtual assets.
Virtual assets trading is presently restricted to professional investors or those with $1 million+ bankable assets.
The growth in crypto exposure to retail investors in Hong Kong might spike with this development. The brokers and fund managers are preparing to win maximum retail investors. Robert Lui, a digital asset leader at Deloitte Hong Kong, says, “We have seen a lot of local brokers and fund managers seeking advice from us about the licensing requirements under the new regulatory regime.”
The community is excited that more regulators recognize the potential of crypto. The African country – Nigeria also plans to regulate cryptocurrency to flow with global economic innovation.
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Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/crypto-growth-in-asia-as-binance-pushes-gopax-acquisition/