Binance to Reduce Stake in Korean Crypto Exchange Gopax

Crypto exchange Binance, the major shareholder of Korean crypto trading platform Gopax, is set to reduce its stake in the exchange within the next one to two months to address issues with reporting changes to virtual asset business operators (VASPs), reportedly.

The move is expected to solve regulatory issues after Korean authorities delayed approval of Gopax's VASP change report submitted in March 2023. Binance’s intention to sell a portion of its stake is seemingly aimed at resolving regulatory concerns. Despite the reduction, Binance could still retain an estimated 80% stake, according to local industry executives. As of the latest update, Binance has not released an official statement on the matter.

Binance acquired a majority stake in Gopax in February 2023 as part of its re-entry into the Korean market, which it had left in 2021. The exact figures of the stake acquisition were not disclosed though.

Binance's involvement came after reports surfaced that Gopax's parent company, Streami Inc., was among the top ten creditors of the insolvent crypto lender Genesis Global. Meanwhile, Digital Currency Group, the parent company of the U.S. crypto lender, was the second-largest shareholder in Gopax.

In 2021, Binance shuttered its South Korean operations due to low usage and trading volume. However, it later expanded its presence in Asia by acquiring Sakura Exchange BitCoin in Japan.

(Source: Crypto.news)