Binance to Reduce Stake in Gopax to Address Regulatory Reporting Issues
Crypto exchange Binance, the major shareholder of Korean crypto trading platform Gopax, plans to reduce its stake in the exchange within the next one to two months. This move is aimed at resolving regulatory concerns related to reporting changes to virtual asset business operators (VASPs) in Korea.
Regulatory Issues Delay Approval of VASP Change Report
Gopax’s VASP change report, submitted in March 2023, faced delays in approval from Korean authorities. By reducing its stake, Binance intends to address these regulatory issues and ensure compliance. However, even after the reduction, Binance is expected to retain approximately 80% ownership of Gopax, according to industry executives. As of now, Binance has not issued an official statement regarding this matter.
Binance’s Entry into the Korean Market and Gopax Acquisition
In February 2023, Binance acquired a majority stake in Gopax as part of its re-entry into the Korean market. The specific details of the stake acquisition were not publicly disclosed. Binance’s involvement came after reports revealed that Gopax’s parent company, Streami Inc., was among the top creditors of insolvent crypto lender Genesis Global. Additionally, Digital Currency Group, the parent company of a U.S. crypto lender, held a significant share in Gopax.
Binance’s Expansion in Asia
In 2021, Binance ceased its operations in South Korea due to low usage and trading volume. However, it later expanded its presence in Asia by acquiring Sakura Exchange BitCoin in Japan.
Hot Take: Binance Addresses Regulatory Concerns through Stake Reduction
Binance’s decision to reduce its stake in Gopax demonstrates its commitment to addressing regulatory concerns and ensuring compliance with reporting changes. By taking this action, Binance aims to overcome the delays in approval from Korean authorities and maintain its presence in the Korean market. While the exact percentage of the stake reduction remains undisclosed, industry insiders estimate that Binance will still retain a significant majority ownership of Gopax. This strategic move aligns with Binance’s expansion plans in Asia, as it continues to navigate the evolving regulatory landscape.
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