Amid problems with regulators and tightening measures against the crypto industry, Binance is planning to sell its stake in Gopax. The world’s largest cryptocurrency exchange, Binance, said it is in the “early stages of discussions” about selling its stake in the South Korean platform Gopax.
Deal with Regulators
On January 30, rumors spread in the Korean media that Binance plans to reduce its stake in Gopax over the next two months. All this turned out to be true – representatives of the crypto exchange are really negotiating. However, they do not provide more detailed information about the sale. “Since these are still preliminary negotiations, we cannot share more detailed information at the moment,” a Binance representative said.
It is expected that the sale of a controlling stake in Gopax will help Binance resolve the issue with regulators.
Binance: The Return to Korean Market and Problems with the Authorities
Binance bought a majority stake in Gopax in February 2023 as part of its return to the South Korean market. In 2021, the crypto exchange had to shut down all operations in South Korea due to a lack of high activity and low trading volumes. At the time of the acquisition, Gopax was experiencing difficulties – it was one of the largest creditors of the bankrupt company Genesis. The exact amount of the transaction still remains unknown.
In June, the South Korean Financial Services Commission said it may cancel the Binance-Gopax deal. The reason is a lawsuit from the US Securities and Exchange Commission (SEC), which accuses Binance of money laundering and terrorist financing. The companies’ discussions come as Asian regulators are moving to tighten measures against the crypto industry.
Earlier, it turned out that Binance allowed large traders to store their funds in independent banks. Industry experts believe that after paying a multibillion-dollar fine to the American authorities, confidence in the trading platform has decreased significantly.
Binance Exchange
It’s considered one of the most well-known and popular cryptocurrency exchanges in the world. The cryptocurrency exchange website offers the purchase and sale of cryptocurrencies: spot, P2P, OTC, and futures trading with leverage of up to 20x. Options, margin trading, staking, landing, pharming, mining pool, liquidity pool, NFT, fan tokens, and other products. Binance exchange regularly holds competitions and tournaments among traders. For example, a trading tournament is regularly held on Binance Futures with a dynamic prize pool (growing depending on the number of participants).
