According to local sources, Binance is in early-stage discussions to reduce its stake in South Korean cryptocurrency exchange Gopax to address liquidity issues and domestic regulatory compliance issues caused by the FTX collapse. News media Dailian.
Gopax, one of five fully registered cryptocurrency exchanges in South Korea, was acquired by Binance in February 2023 after facing liquidity issues due to FTX. Genesis Global Capital. Binance came forward with the condition of acquiring a 72.26% stake in the Korean exchange to solve Gopax’s liquidity problem.
Steve Kim, Binance’s director for Asia Pacific, said at a roundtable on Tuesday that Binance plans to convert its loans to Gopax into shares and then sell those shares to other companies. This will alleviate the debt problem within Gopax. Telecommunications company news 1. Under the plan, Binance will step down from the largest shareholder to the second largest shareholder, Dailian reported.
gopax presentation Last December, it was announced that it was in the final stages of raising funds to normalize Genesis loss deposits. The reviewed plans are also expected to help Gopax renew its registration with the local regulator, the Financial Services Commission.
Following the Binance acquisition, Gopax applied to the FSC to report structural changes in virtual asset service provider registration. which FSC has been delayed We have been in the process of approving registration changes for over a year. Binance’s Legal Issues in the US.
Chairman Kim reportedly said during an online roundtable on Tuesday that he would provide more details within two months. Binance did not immediately respond to The Block’s request for further comment.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.