Binance re-enters South Korea acquiring Gopax crypto exchange
Binance, the largest provider of digital asset trading platforms, has bought a majority share in the ailing South Korean crypto exchange Gopax, entering a sector it left two years ago.
Large stake agreement’s terms are not made public
The chief business officer of Binance, Yibo Ling, stated that the company had acquired a significant stake in Gopax, which stopped allowing withdrawals from specific goods in November.
The industry recovery initiative, a co-investment project to BNB, is leading and has pledged $1 billion to provide the financing for the purchase. The companies are still keeping the amounts hush-hush.
One of the ten biggest known creditors of the insolvent lender Genesis Global is Gopax’s parent business, Streami Inc. A yield product that GOPAX launched with Genesis as a partner saw the suspension of customer withdrawals in November.
According to a blog post on GOPAX, Digital Currency Group, the parent firm of the US crypto lender, is the second-largest shareholder.
Binance has plans to increase funding to top off consumer deposits
Binance intends to fund the exchange so that GoFi, the yield product from GOPAX, can be used for customer withdrawals and interest payments.
In an interview, Ling stated that the agreement’s main goal was to support clients and ensure that anyone who wants to remove their assets has the means to do so.
In 2021, Binance closed its South Korean business because of poor usage and volume. However, it increased its presence in Asia in the latter part of last year when it bought Sakura Exchange BitCoin in Japan.
The collapse of Do Kwon’s TerraUSD algorithmic stablecoin ecosystem and last year’s crypto crash impacted South Korea. Many South Korean investors lost money, and Kwon is currently wanted for espionage. That background damaged the digital asset market.
As the founder and CEO of Binance, Changpeng CZ Zhao expressed his statement, hoping that this move alongside GOPAX would help to strengthen the Korean crypto and blockchain industry further.
Due to market volatility and the demise of competitor FTX, Binance experienced outflows in the latter part of last year. Sentiment has stabilized thanks to a rise in token prices this year.