Binance is all set to re-enter the South Korean market through its financing in the Gopax exchange, enabling customers to withdraw funds.
As the cryptocurrency industry gradually recovers, Binance Crypto exchange continues on its mission to expand universally. Binance Crypto exchange had to bid farewell to the South Korean market owing to low usage and volume in Jan. 2021. The exchange likewise faced pressure from the nation’s regulatory authorities.
Ever since, the exchange has been attempting to re-enter the market but has faced challenges from local authorities. Binance Crypto exchange eventually marked its return by acquiring a whole lot of stake in Gopax, one of the largest South Korean exchanges.
Bloomberg: Binance Crypto exchange Holdings Ltd. has acquired a majority stake in the troubled South Korea-based digital currency exchange GOPAX. The financing of the buy came from a Binance-led co- financing project was known the Industry Recovery Initiative, to which Binance Crypto exchange pledged $1 billion.
— Wu Blockchain Tech (@WuBlockchain) February 3, 2023
Binance Crypto exchange Acquires Majority Equity Position in Gopax
Yibo Ling, the Chief Business Officer at Binance Crypto exchange, informed Bloomberg they acquired a “meaningful” equity stake in Binance Crypto exchange. The Binance Crypto exchange team has not is still revealed the terms of the agreement and the size of their Gopax investments.
Nonetheless, a South Korean publication reported in Jan. that Binance Crypto exchange acquired a 41.2 percent stake from Lee Jun-hang, the largest shareholder of Gopax.
This acquisition comes from the $1 Billion Binance Crypto exchange Industry Recovery initiative, which was announced post the collapse of FTX Trading Ltd. The initiative attempted to assist the cryptocurrency industry recover from the FTX Trading Ltd contagion.
Acquisition Will Help Gopax Customers Withdraw Funds
Gopax paused customer withdrawals from certain products such as GoFi. This is because the South Korean exchange is impacted by the turmoils of Genesis Worldwide and its parent Digital currency Group (DCG). Genesis filed for Chapter 11 bankruptcy last month.
Genesis partnered with GoFi to offer yields on cryptocurrency lending. The parent company of Gopax, Streami Inc., is one of the 10 largest creditors of Genesis. Similarly, DCG is a key business partner and the second- largest shareholder of the South Korean exchange.
Yibo Ling stated: “The fundamental thrust of this deal was to facilitate customers and make sure that any customers who want to withdraw their assets have the potential to do so.”
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