Binance is reportedly acquiring Gopax, a South Korean exchange, while Hong Kong plans to allow retail investors to have crypto exposure.
South Korean publication, Decenter, reported that Binance had completed its due diligence to acquire Gopax. It is one of the largest exchanges in South Korea. The acquisition was to be announced before Christmas, but was delayed due to final discussions on valuation.
Binance plans to re-enter South Korea
Binance will wind up its business from South Korea in January 2021 due to low usage and volume. The exchange also faced regulatory challenges from local authorities.
The Changpeng Zhao-led exchange has been trying to re-enter the market but has not received the regulatory go-ahead for direct entry due to concerns such as money laundering and investor safety. But the team found its way back by reportedly acquiring a 41.2% stake from Lee Jun-hang, the largest shareholder of GoPax.
With Binance on an aggressive acquisition spree, the community fears it will hurt crypto, even more so, when the exchange goes down. The sentiment is negative for Changpeng Zhao and Binance.
Hong Kong plans to expand trading for retail investors
The Hong Kong Regulatory Authority is planning to expand crypto trading to retail investors. According to the South China Morning Post, the Securities and Futures Commission[एसएफसी]It will explore how to allow retail investors to trade in virtual assets.
Virtual asset trading is currently limited to professional investors or those with $1 million+ bankable assets.
The growth in crypto exposure for retail investors in Hong Kong could accelerate with this development. Brokers and fund managers are gearing up to win over more and more retail investors. “We have seen a number of local brokers and fund managers asking us for advice regarding licensing requirements under the new regulatory regime,” says Robert Lui, a digital asset leader at Deloitte Hong Kong.
community is Excited More regulators recognize the potential of crypto. African country – Nigeria is also planning to regulate cryptocurrencies to flow with the global economic innovation.
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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.