Binance CEO Richard Teng said the firm plans to support South Korean start-ups, especially in the crypto sector, as many struggle with the challenges of entering the global market.
During a panel session moderated by Hashed co-founder and partner Ryan Kim, held in Seoul, South Korea, Teng discussed supporting more projects through Binance’s platforms like Binance Labs and potential fundraising opportunities.
Acknowledging the challenges these companies may face in understanding international markets, preferences, and legal jurisdictions, Teng emphasized Binance’s role in bridging the gap between local South Korean startups and global opportunities.
“We can help support interesting South Korean projects and bridge the gap in terms of overseas expansion,” Teng said.
Retail Crypto Trading High in South Korea
Many crypto exchanges have been facing significant regulatory hurdles from South Korean financial authorities and struggle to break into the market.
Upbit and Bithumb hold over 95% market share, and strict regulations hinder new exchanges’ entering, reports Tiger Research.
“Retail participation is extremely high. So it’s a very important market. Every country will have its policy agenda, and policy considerations in terms of formulating the framework. So what is right for Korea has to be determined by the government,” said Teng.
This high level of retail participation makes South Korea a critical market for Binance, and the company is keen on working with local authorities to navigate the country’s unique regulatory landscape.
Binance Faces Bumpy Road in South Korea
In 2023, Binance bought a majority share in the South Korean exchange GOPAX. However, the Financial Services Commission (FSC) decided to block this deal and ruled that Binance must reduce the size of its holdings from around 70% to 10%. The cloud services provider Megazone stepped in with a proposal to buy up Binance’s majority stake in GOPAX.
Asia Pacific Crypto Market Sees Power Shifts
Shifting the focus to the broader Asia-Pacific market, Teng observed significant crypto developments in countries like Japan, Singapore, and Hong Kong. He noted how these markets have evolved over the years, each at different stages of adopting crypto-friendly policies.
Teng notes in the early days many crypto exchanges headed out to Japan but this changed over time.
“Then that sort of shifted to Singapore. When Singapore flew the crypto flag in 2020. Earlier this year, [shifted to] Hong Kong. So you have within Asia Pacific, different countries looking in general how to become very [crypto] friendly. And Korea is extremely vibrant, but we see pockets of very interesting developments, and that is replicated,” said Teng.
Binance Re-Enters Indian Market
Recently Binance registered as a reporting entity with India’s Financial Intelligence Unit (FIU-IND) and Teng stressed there is potential for growth in the Indian market 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 to most regulate the exchange globally,” said Teng.
Commenting on the Middle East, Teng pointed to innovative regulatory approaches in countries like Abu Dhabi, Bahrain, and Dubai. He praised Dubai’s establishment of the Virtual Assets Regulatory Authority (Vara), which is dedicated solely to overseeing the crypto industry.
“Having a dedicated regulator just regulating crypto is a very, very interesting concept,” Teng remarked, suggesting that such focused oversight could be a model for other regions.
KBW2024 Kicks off in Seoul This Week
Korea Blockchain Week (KBW2024) is taking place in Seoul, South Korea this week, 1-7 September, bringing together a global audience of blockchain enthusiasts, developers, investors, and industry leaders. The country is making its mark and leading on the Web3 and blockchain front.
Speakers include Vitalik Buterin, Arthur Hayes, Brad Garlinghouse, Richard Teng, and more.
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