Binance acquires troubled crypto exchange GOPAX

abdelaziz Fathi

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Yibo Ling, chief business officer at Binance told Bloomberg the deal was funded by the Industry Recovery Initiative (IRI), which the exchange established in November to help reduce further cascading negative effects of FTX collapse. At the time, CEO CZ committed $1 billion to the fund at a public address, with an additional $1 billion to be added if the need arises.

Binance purchased the equity stake from Gopax’s largest shareholder, Lee Jun-hang, and the deal was originally set to be announced last year. However, the takeover was postponed for further due diligence over equity value calculations.

Pending the official approval of Korean authorities, Binance is in the final steps to complete the transaction, which would allow it to operate once again in the South Korean crypto market. South Korean authorities apply strict new rules to crypto businesses to minimize the risks of money laundering and market manipulation, which went into full effect last year.

The exact details weren’t disclosed, but according to a report by local media outlet Decenter Binance bought a 41.2% stake from CEO Lee Jun-haeng. The largest shareholder of Gopax will maintain the current representative system for the time being to ensure stable management.

The collapse of crypto exchange FTX has had an impact on South Korean exchanges, including GOPAX. The Seoul-based platform suspended payments in its DeFi service GOFi, which was introduced in partnership with crypto lender Genesis Global Capital.

CEO Changpeng Zhao revealed earlier in November that Binance is preparing to register under South Korean financial authorities by complying with local regulations. The exchange had previously opened a local office four years ago but had to cease its crypto trading services in December 2020.

Binance also discontinued global trading services for South Korean won in 2021 as local regulators banned foreign platforms from offering services to local residents. Despite this, CEO Changpeng Zhao said he is not worried about rival exchanges capitalizing on recent regulatory woes.  He described Binance’s ecosystem – which includes futures trading, wallets and payments service, OTC trading, and a Visa-backed credit card – as very hard to “replicate in one go.”

Historically, South Korea is one of the hottest investing and trading markets for cryptocurrencies.

Read this next

Digital Assets

TON Foundation teams up with HashKey on fiat access for Telegram Wallet

The TON Foundation, a collective of developers behind The Open Network (TON) blockchain, has entered into a strategic partnership with digital asset financial services firm HashKey Group.

blockdag

BlockDAG aka Kaspa’s Toughest Competitor Releases DAGpaper, Lightes Up The Las Vegas Sphere Pulling Shiba Inu Investors & Amassing $16.4M in Presale

BlockDAG, emerging as a Kaspa competitor, unveils its DAGpaper, spotlighting the Las Vegas Sphere and captivating Shiba Inu investors with a $16.4M presale success.

Fundamental Analysis

Global FX Market Summary: USD, ECB, Gold, Oil  April 12 ,2024

A strong US economy, cautious Fed policy compared to Europe, and safe-haven demand are all fueling the surge of the US Dollar.

Digital Assets

Thai crypto exchange Bitkub eyes $3 billion valuation

Thailand’s largest cryptocurrency exchange Bitkub is gearing up for a public offering next year with a potential valuation of up to $3 billion, according to Bitkub Capital Group CEO Jirayut Srupsrisopa.

Technical Analysis

GBPUSD Technical Analysis Report 12 April, 2024

GBPUSD currency pair can be expected to all further toward the next support level 1.2400, target price for the completion of the active minor impulse wave.

Market News

Navigating Currency Trends: Extensive Analysis on EUR/USD Signal

Traders Union provides comprehensive daily analysis and signals for EUR/USD.

Retail FX

Axi extends sponsorship of Brazilian Esporte Clube Bahia

Forex and CFD broker Axi has just announced they’re extending their sponsorship with Brazilian Serie A team Esporte Clube Bahia into the 2024 season.

Digital Assets

Binance-backed Gopax narrows losses amid strong crypto trading

Binance-backed cryptocurrency exchange Gopax reported lower net losses for 2023, according to its parent company Streami’s year-end financial report.

Chainwire

99Bitcoins Launches Learn-To-Earn Presale and Raises $150K On First Day

99Bitcoins, established in 2013, has recently begun its token presale in an effort to harness the current upward trend in Bitcoin’s value. The 99BTC team, seizing this opportunity, offers its learn-to-earn platform, a longstanding resource in cryptocurrency education.

<