Priya patelTLDR:
Binance is reducing its stake in Gopax, a South Korean-based company, due to regulatory concerns. The move comes after Binance acquired a majority stake in Gopax in February 2023. Binance plans to address Gopax’s significant debt by converting it into equity and selling shares. Despite regulatory hurdles and legal challenges, Binance remains interested in the South Korean crypto market.
Binance, one of the largest global crypto exchange platforms, is taking a step back from its involvement in Gopax. This decision follows Binance’s acquisition of a majority stake in Gopax in February 2023 and aims to address concerns related to reporting requirements associated with Virtual Asset Business Operations (VASPs).
Steve Young Kim, Binance’s Asia-Pacific director, explained that Gopax’s significant debt would be resolved through an equity-to-equity conversion. Binance has committed to disclosing further details on its stake reduction with Gopax within the next two months.
Despite regulatory hurdles and legal challenges, Binance remains interested in the South Korean crypto market. Binance sees South Korea as a pivotal hub for crypto exchange platforms, with substantial economic scalability and a thriving talent and startup community.
Binance faced hurdles in re-entering the South Korean market due to a lawsuit from the U.S. Securities and Exchange Commission (SEC). While previous exits from the market were resolved, the current SEC lawsuit remains an unresolved challenge, creating uncertainty in the market.
