On February 3, Binance announced its return to the South Korean market by acquiring a majority stake in Gopax, a cryptocurrency trading platform funded by Digital Currency Group. This marks the exchange’s re-emergence in this scene two years after initially leaving it.
Although the Details of the Purchase Are Not Clear, Binance Has Bought a “Significant” Stake in Gopax
To fuel this deal, Binance committed one billion dollars to the Industry Recovery Initiative – a financial-focused investment by the company. Changpeng Zhao, CEO of Binance, expressed that their commitment is to safeguard cryptocurrency users and ensure the security and success of the entire crypto industry. “The Industry Recovery Initiative was created to aid promising ventures affected by last year’s events. We can confidently say that taking this step with GOPAX will contribute towards revitalizing blockchain technologies and cryptocurrencies in Korea,” he noted optimistically.
Reports from Binance Chief Business Officer Yibo Ling have revealed that the company has purchased a “significant” stock holding in Gopax. Yet, he remained tight-lipped about any specifics of the deal. While it was initially slated to be announced over a year ago, previous reports indicated that Binance acquired 41% of shares held by its primary investor Lee Jun-hang. This strategic move will undoubtedly benefit both companies and further solidify their respective positions in the market.
Also Aims To Protect Crypto Investors In South Korea
In November 2022, Gopax paused withdrawals for some of its products due to the collapse of the FTX exchange. A few months later, this issue was resolved. Then in response to Genesis Global Capital’s struggles – which led them to eventually file for bankruptcy – Gopax chose to suspend withdrawal payments on their DeFi service GoFi via principal and interest payments. As one of Gopax’s most important commercial partners before declaring bankruptcy, Genesis contributed greatly towards their GoFi product success and held a sizable stake in the company as well.
Binance has allocated its new resources towards Gopax to ensure client withdrawals and optimal interest payments for GoFi. Additionally, this program aims to develop knowledge concerning cryptocurrencies by fostering relationships with the South Korean authorities and virtual asset markets. Ling shared his thoughts on the aim of this agreement: “It is our priority to help customers withdrawal their assets when they desire.”
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