Binance, the largest cryptocurrency exchange platform by volume has set its sights on entering the South Korean crypto arena. The platform is eyeing the establishment of between three to five locally-based enterprises before the end of 2018.
Binance Sets to Enter South Korea
According to Changpeng Zhao, the CEO of Binance, South Korea is an essential market in the emerging cryptocurrency landscape. Speaking during his keynote address at the recently concluded Blockchain Partners Summit in Seoul, Zhao declared that Binance stood to gain a lot by enriching its user base with the rapidly expanding virtual currency ecosystem in the country.
It appears that Binance has been mulling over a move to South Korea, one of the busiest crypto trading nations in the world. As early as August 2017, the platform began offering its website in Korean. The platform also hired Jeon Ah-rim as local managing director and Choi Hyung-won as the director of Binance Labs, both of whom are South Koreans.
Binance Ticks the Right Regulatory Compliance Boxes
South Korea is one of the countries with the strictest cryptocurrency regulatory framework. In late 2017, the country’s government began to regulate the market starting with placing a ban on ICOs. Numerous stringent measures contributed to the dramatic fall in crypto prices as traders feared the impact of the negative news coming out of the country.
Binance, for the most part, has excellent security and reliability protocols. There has been a spate of cyber attacks against cryptocurrency exchange platforms in the country. In June 2018 alone, Bithumb and Coinrail, two South Korea-based platform were hacked. Binance also has a thorough and robust ICO token listing process. Thus, the platform isn’t likely to run afoul of local regulators.
Stiff Competition in the South Korean Cryptocurrency Market
Even with the strict regulatory conditions, market competition in the country is still fierce. Binance doesn’t have many local users. Thus, the platform will have to compete with giants like Upbit, Huobi, Bithumb, Korbit, etc. Huobi moved to South Korea in April, bringing in 100 different trading pairs on offer for local traders.
What are your views on the proposed plans by Binance to enter South Korea? Do you think the platform will be able to control a significant portion of the market in the country? Let us know your thoughts in the comment section below.
Image courtesy of Ethereum World News archives.