Binance to Bridge the Gap for South Korean Crypto Startups Expanding Overseas
Binance CEO Richard Teng has announced plans to bolster South Korean startups, particularly in the crypto sector, as they face challenges entering the global market. Speaking during a panel session in Seoul, moderated by Hashed co-founder Ryan Kim, Teng outlined Binance’s commitment to supporting these startups through platforms like Binance Labs and potential fundraising initiatives.
Teng highlighted the difficulties that South Korean companies encounter when navigating international markets, including understanding different consumer preferences and legal jurisdictions. He emphasized Binance’s role in facilitating these startups’ global expansion, saying, “We can help support interesting South Korean projects and bridge the gap in terms of overseas expansion.”
Challenges in the South Korean Crypto Market
The panel also shed light on the regulatory challenges faced by crypto exchanges in South Korea. The market is dominated by Upbit and Bithumb, which together hold over 95% of the market share. Strict regulations make it difficult for new exchanges to enter the market. Teng acknowledged the high level of retail participation in South Korea, making it a crucial market for Binance. He expressed the company’s willingness to collaborate with local authorities to navigate the country’s unique regulatory environment.
Binance’s Regulatory Struggles in South Korea
In 2023, Binance acquired a majority share in the South Korean exchange GOPAX. However, the deal faced regulatory roadblocks when the Financial Services Commission (FSC) required Binance to reduce its holdings from around 70% to 10%. The situation led to Megazone, a cloud services provider, stepping in with a proposal to purchase Binance’s majority stake in GOPAX.
Crypto Market Developments Across the Asia-Pacific Region
Teng also discussed broader developments in the Asia-Pacific crypto market, noting significant progress in countries like Japan, Singapore, and Hong Kong. He observed how these markets have evolved at different paces, with each adopting crypto-friendly policies at different stages. Teng highlighted the shifting focus of crypto exchanges within the region, from Japan to Singapore in 2020, and more recently to Hong Kong. He noted that South Korea remains a vibrant market with interesting developments in the crypto space.
Binance’s Re-Entry into the Indian Market
In addition to its efforts in South Korea, Binance has recently re-entered the Indian market, registering as a reporting entity with India’s Financial Intelligence Unit (FIU-IND). Teng emphasized the potential for growth in India and the importance of working closely with local stakeholders. “We have secured our 19 regulatory approvals globally and in India quite recently. So we are registered with the financial intelligence unit in India now, making us the most regulated exchange globally,” Teng stated.
Innovative Regulatory Approaches in the Middle East
Teng also praised the innovative regulatory approaches in the Middle East, particularly in Abu Dhabi, Bahrain, and Dubai. He highlighted Dubai’s establishment of the Virtual Assets Regulatory Authority (Vara), which is dedicated solely to overseeing the crypto industry. Teng suggested that such focused oversight could serve as a model for other regions.
Korea Blockchain Week 2024 Kicks Off in Seoul
The discussion took place during Korea Blockchain Week (KBW2024), which is being held in Seoul from September 1-7. The event has attracted a global audience of blockchain enthusiasts, developers, investors, and industry leaders. Notable speakers include Vitalik Buterin, Arthur Hayes, Brad Garlinghouse, and Richard Teng. South Korea is making significant strides in the Web3 and blockchain sectors, further solidifying its leadership in the industry.
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