Binance in Talks to Reduce Stake in Gopax to Address Liquidity Issues
Binance is reportedly discussing plans to decrease its stake in South Korean crypto exchange Gopax in order to resolve liquidity problems caused by the collapse of FTX and compliance concerns. Gopax, one of South Korea’s fully registered crypto exchanges, was acquired by Binance in February 2023 after facing liquidity issues related to Genesis Global Capital. As part of the acquisition, Binance obtained a 72.26% stake in Gopax. Binance’s Asia-Pacific director, Steve Kim, stated that the company intends to convert its loans to Gopax into equity and then sell the shares to other firms. This move will alleviate Gopax’s debt issues and reduce Binance’s stake from the largest shareholder to the second-largest.
Gopax Aims to Normalize Deposits and Renew Registration
Gopax announced that it is in the final stages of securing funds to restore its lost deposits from Genesis. Additionally, the plan for Binance to reduce its stake is expected to assist Gopax in renewing its registration with the local regulator, the Financial Services Commission (FSC). However, Gopax has faced delays in obtaining FSC approval for reporting its structural change in virtual asset service provider registration due to concerns about Binance’s legal issues in the United States.
Timeline for Further Details
According to Steve Kim, more information regarding these plans will be provided within two months. At present, Binance has not responded to requests for additional comments from The Block.
Hot Take: Binance Addresses Liquidity Issues at Gopax Through Stake Reduction
Binance is reportedly taking steps to resolve liquidity concerns at South Korean crypto exchange Gopax by reducing its stake. Gopax, which was acquired by Binance in 2023, has been facing liquidity issues since the collapse of FTX. By converting loans into equity and selling shares to other firms, Binance aims to ease Gopax’s debt problems. This move will also allow Gopax to renew its registration with the local regulator, the Financial Services Commission. However, the process has been delayed due to concerns about Binance’s legal issues in the United States. More details regarding these plans are expected to be released within two months.
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