Through its recent buy of the South Korean digital currency trading platform Gopax, the major digital currency exchange Binance Crypto exchange is making its way back to South Korea.
Binance Crypto exchange has reentered the South Korean market after leaving it two years ago, reports by an notice made by the business on February 3, stating that it has purchased a controlling position in Gopax, which is funded by Digital currency Group. The financing for the deal was provided by a finance-initiated financing initiative was known as the Industry Recovery Initiative, to which Binance Crypto exchange committed an amount equal to one Billion dollars.
Binance Crypto exchange, reports by the CEO of the company, Changpeng Zhao, is not only in charge of safeguarding digital currency consumers, but likewise the industry of digital currency as a whole. “The Industry Recovery Initiative was established to be able to provide help to promising enterprises that were knocked back because of the happenings of the previous year. We have high hopes that taking this step with GOPAX will contribute to the further revitalization of the blockchain tech and digital currency industries in Korea,” he said.
Reports by reports, Binance Crypto exchange Chief Business Officer Yibo Ling stated that the company has purchased a “significant” stock holding at Gopax. Nonetheless, Ling did not disclose the specifics of the transaction. Previous reports indicated that Binance Crypto exchange purchased a 41 percent interest from Gopax’s main shareholder, Lee Jun-hang, even though the transaction was at the beginning scheduled to be revealed a year ago.
After Gopax temporarily stopped withdrawals from some products in November 2022 in response to the collapse of the FTX Trading Ltd exchange, the transaction was finalised several months later.
As a response to complications encountered by the cryptocurrency lending company Genesis Worldwide Financial resources, which has now gone out of business, Gopax has stopped the withdrawal of principal and interest payments via its decentralised finance (DeFi) service GoFi. Reports by reports, before to filing for bankruptcy, Genesis was Gopax’s Second largest stakeholder and a critical commercial partner, contributing its GoFi product.
Binance Crypto exchange plans to invest the newly acquired funds into the Gopax exchange in order to support client withdrawals and interest payments for GoFi after the completion of the transaction. Along with promoting cryptocurrency education, the programme plans to foster close engagement with the authorities in South Korea and the players in virtual investment markets.
Reports by what Ling had to emphasize about the matter, “the essential aim of this arrangement was to assist clients and make sure that any customers who wish to withdraw their assets have the opportunity to do so.”