In 2021 the Korean government cracked down on digital asset exchanges requiring the crypto trading platforms to receive regulatory approval to operate. While some were approved before a strict deadline the bulk struggled to meet the requirements. One of these was GOPAX.
Today, according to a note from the company, GOPAX has re-emerged following a partnership with Jeonbuk Bank and a VASP [virtual asset services provider] license acquired in November 2021.
The relationship with the bank means it can soon handle transactions in Won with named accounts. GOPAX will be able to compete with the four largest exchanges that were the first to gain contracts with banks. GOPAX reports more than 800,000 users after a five-month shutdown.
Following new rules created to crack down on possible money laundering and illicit activities, many exchanges closed but GOPAX will now be the 5th digital asset exchange to offer won to crypto services according to a report in forkast. The growing regulatory clarity should help to drive adoption as exchanges know the rules and consumers will have more confidence in the operations. Before the crackdown, Korea was one of the top crypto markets in the world.
A recent report by the Boston Consulting Group predicts that South Korea’s digital asset sector should experience 20% annual growth while creating tends of thousands of new jobs. The BCG report was also said to encourage a regulatory approach that “promoted” the industry instead of discouraging innovation – in contrast to certain other jurisdictions.