Kolon's Top Executive and Binance Collaborate to Create a Crypto Exchange in South Korea

Binance, the world's biggest cryptocurrency trading platform, is said to be in talks with Lee Woong-yeol, the senior head of Kolon Group, a South Korean pharmaceutical and textile company, about launching a new virtual asset exchange in the nation. The market would be created in collaboration with other blockchain-native companies and would appeal to government and banking officials. This step is part of Binance's intentions to return to the South Korean market after departing due to government pressure in 2021.

Kolon Group and Binance's Plans for the New Digital Asset Exchange

Lee Woong-yeol is collaborating with other blockchain companies to create a new cryptocurrency exchange network in South Korea. This exchange would serve the country's government and financial officials while also assisting in mitigating the dangers of money smuggling and market abuse. The South Korean government has imposed stringent restrictions on bitcoin companies, which went into force last year. Kolon Group, which has interests in South Korean markets such as Dunamu, wants to reach an income of $2.6 billion by 2025.

The Return of Binance to South Korea

Binance has been working hard to re-enter the South Korean market after leaving in 2021. As part of its recovery strategy, the exchange purchased a majority share in GOPAX, a South Korean bitcoin exchange. Binance created the Industry Recovery Initiative (IRI) in November to help mitigate the bad impacts of the FTX crash. In a public speech, the IRI pledged $1 billion to the fund, with an extra $1 billion available if needed.

Binance is completing the deal to purchase a share in GOPAX, subject to clearance from Korean officials. The precise terms of the purchase have not been revealed, but local media source Decenter claimed that Binance acquired a 41.2% share from CEO Lee Jun-haeng. GOPAX's biggest stockholder will keep the existing representation structure in place for the time being to guarantee steady administration.

Binance's Plans to Register With South Korean Financial Authorities Binance CEO Changpeng Zhao has disclosed that the company is planning to register with South Korean financial authorities by adhering to local laws. The exchange previously established a local branch four years ago, but its crypto dealing services will be discontinued in December 2020. Binance also ended worldwide selling services for South Korean won in 2021, as local authorities prohibited foreign platforms from providing services to local people.

Conclusion

Binance's collaboration with Lee Woong-yeol and Kolon Group to launch a new virtual asset exchange in South Korea demonstrates the exchange's resolve to return to the profitable crypto market in the country. Binance is making major steps to conform with local laws and obtain permission from the authorities, including the purchase of a share in GOPAX, and plans to file with South Korean finance authorities. The creation of a new crypto trading platform in collaboration with blockchain-native companies and the Kolon Group could possibly provide a solution for government and financial officials to reduce the dangers of money smuggling and market abuse.

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