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Binance, the world’s largest cryptocurrency exchange by volume, recently announced its intention to sell its majority stake in Gopax, one of South Korea’s largest crypto exchanges. Last February, Binance had acquired the majority stake in Gopax to re-enter the South Korean crypto market but faced obstacles from the Financial Services Commission (FSC) of South Korea and the U.S. Securities and Exchange Commission (SEC).
Binance to Sell Majority Shares in Gopax
According to local news outlet News1, the crypto exchange giant Binance is preparing to sell its majority shares in Gopax to address issues related to changes in reporting requirements for virtual asset service providers (VASPs). Binance will share details on reducing its stake in Gopax over the next two months. It plans to convert the credit paid as GoFi repayment into equity and sell part of its shares along with Gopax’s debt to resolve the issue.
Binance’s Asia-Pacific director Steve Young Kim mentioned the lack of clear guidelines for new virtual asset reporting. He emphasized that the reduction in shares is a preventive measure while seeking meaningful dialogue with financial authorities, expecting “a partial resolution of Gopax’s significant debt through conversion from debt to equity. We hope to provide more specific data on the sale of shares in one or two months,” he said.
Binance’s Plan to Enter the South Korean Market
As is known, after its exit in January 2021, Binance actively moved to re-enter the South Korean crypto market and acquired the majority stake in Gopax, one of the country’s largest crypto exchanges.
Currently, South Korea has one of the world’s largest crypto economies, an excellent talent pool, and a startup community. The South Korean expansion is crucial for Binance to lead the next developments in Blockchain and Web3.
Binance was in the final stages of completing the acquisition deal, but the situation worsened when the SEC filed a lawsuit in June. Following a settlement with the U.S. Department of Justice (DoJ) in November and the resignation of former CEO Changpeng Zhao, Binance experienced a gradual recovery in the market. However, the ongoing lawsuit by the SEC against Binance, Binance.US, and Zhao continues to impact the crypto exchange.
