To start a digital asset exchange in South Korea, Lee Woong-yeol, the honorary chairman of the company Kolon, has teamed up with Binance.
A virtual asset trading platform is being developed in South Korea by the honorary chairman of the Kolon company, according to local news reports in Korea.
According to certain accounts, Lee Woong-yeol is receiving assistance from local blockchain-based organizations while he develops the cryptocurrency trading platform.
The Binance partnership was announced on February 28. The honorary chairman’s spokesperson stated that the company is prepared to cooperate with financial authorities.
Kolon, a conglomerate with approximately 40 companies and 28 overseas subsidiaries, was created in 1954. The group of businesses oversees operations in a number of sectors, including finance, chemicals, and fashion.
Kolon has been interested in cryptocurrencies since 2020 and has made investments in Dunamu and other South Korean exchanges. When he departed the leadership post in Kolon in 2018, honorary chairman Lee is said to have met with local and international digital currency officials on a number of occasions.
As he announced his resignation, Lee explained that his decision to depart was influenced by his “untutored” position on blockchain technology. The proposed cryptocurrency exchange from Kolon and Binance might compete with Upbit, the leading South Korean exchange in terms of market share.
According to reports, Upbit controls more than 80% of the nation’s crypto investing sector. Before to joining up with the Kolon Group, on February 3, Binance bought the bulk of the ailing South Korean cryptocurrency exchange Gopax.
After leaving the South Korean market around two years ago, Binance is poised to re-enter the industry with its Gopax acquisition. Genesis, a troubled and bankrupt cryptocurrency lender, suspended its DeFi service withdrawals in November 2022 as a result of Gopax’s connections to the latter.
Binance wants to assist Gopax in getting back on track and restoring business as usual.Yet, the Gopax transaction is being looked into by South Korean financial watchdogs.
Concerns have been voiced by the government regarding Binance’s re-entry into South Korea. The largest cryptocurrency exchange by market capitalization, in their opinion, will lead to a rise in financial crimes in the nation, according to the local news source Chosun Ilbo. Due to its “hidden” administration style, the authorities fear that Binance may increase crimes like money laundering.