- Binance and Kolon’s crypto exchange will lead to cutthroat competition with Upbit
- Binance’s acquisition of Gopax, a local exchange, is being investigated by South Korean regulators
The world’s biggest crypto exchange by trading volume has joined forces with South Korean corporation Kolon to start a trading platform in the country, Crypto.news wrote, citing local media sources.
Kolon’s honorary chairman, Lee Woong-yeol, is actively cooperating with Binance on the initiative. Insiders report that South Korean blockchain-based entities are helping him build the digital asset exchange.
An impressive partner
Lee Woong-yeol announced the partnership with Binance on Feb. 28 and assured they were willing to cooperate with financial authorities. Kolon has more than two dozen subsidiaries abroad. Founded in 1954, the conglomerate has over 40 entities in several industries, including fashion, finance, and chemicals.
Kolon got into cryptocurrency in 2020 with investments in Dunamu and other South Korean exchanges. Reportedly, Lee has had several meetups with foreign and local digital currency officials since he stepped down as head of Kolon five years ago. When he resigned, he explained his choice to leave was due to his “untutored” view of blockchain technology.
Binance and Kolon’s idea to launch a crypto exchange might result in cutthroat competition with Upbit, which dominates the local market. Upbit is believed to hold more than 80% of the South Korean crypto investment market.
South Korean regulators eyeing Binance
Before partnering with the Kolon Group, the leading exchange acquired a majority share in Gopax, a struggling crypto exchange based in South Korea. Binance had not been active on the local crypto market for around two years.
Gopax was connected to insolvent crypto lending platform Genesis. In November last year, Gopax suspended its DeFi service withdrawals.
Binance’s acquisition of Gopax is currently being investigated by South Korean financial regulators, who alarmed that Binance’s re-entry into the country would lead to more financial crimes. Watchdogs believe the crypto exchange will boost money laundering and related crimes because of its clandestine management nature.
