Binance Plans To Enter South Korean Market
Binance, one of the largest cryptocurrency exchange platforms, is ready to enter the South Korean market. The news is reported by a local news portal, Korea Business, but has not been confirmed by Binance.
The platform reportedly plans to establish three to five local authorities this year. An entry into the South Korean market would have a massive positive impact on the trading platform, increasing its volume and having new clients in Asia.
The news is a logical step, given the company's business history. Binance added a service in Korean earlier this year. The company has also recently hired Jeon Ah-rim as its local Marketing Director and Choi Hyungwon, Director of Binance Labs, both from South Korea.
Binance is the world's largest cryptocurrency exchange platform in terms of trading volume. The Hong Kong trading platform was founded in 2017 by Changpeng Zhao and Yi He and has earned over 300 million dollars in the first six months of this year. In addition to planning to open its base in South Korea, Binance will also establish operations in Malta later in 2018.
Although the company has not yet made an official announcement, the local Korean media has reported it after the Blockchain Partners Summit in Seoul. The event took place on 21 and 22 July.
Binance CEO Changpeng Zhao delivered a speech in which he highlighted the importance of the local market. He also noted that the cryptocurrency change will enrich his community. Also present at the event were He Yi, co-founder of the company, and Ella Zhang, director of Binance Labs.
South Korea is one of the largest countries to adopt cryptocurrency and blockchain technology. According to several sources, most investors in South Korea have invested in cryptocurrency. The main exchange platforms in the country are Bithumb, Korbit and Coinone. The country had legalized the use of Bitcoin (BTC) by mid 2017 and almost 20% of Bitcoin is traded in South Korea.
South Korea also stands out for having operated with cryptocurrencies at a 30% higher rate during peak hours compared to other countries.
In early July, South Korea began to recognize crypto exchanges as legal entities, consolidating its overall position in the local economy. Even though, Initial Coin Offerings (ICOs) remain banned.
Shortly thereafter, the country's Financial Services Commission (FSC) announced the formation of a division dedicated to cryptocurrency, devoting more resources to regulating the countryside. The Financial Innovation Bureau (FIB) – the name given to the new agency – is tasked with responding to new developments and challenges such as cryptocurrencies.
In early June, Binance invested an unknown amount in the Malta-based ESports Company.
Binance's move to South Korea is also good news for South Korea's business environment. The company has a history of encouraging local blockchain-based initiatives.
In Malta, the company is searching partnerships with banks in order to offer fiat pairs at the exchange, including Euro, Pound and Dollar.