Binance Re-enters South Korea Through GOPAX Deal, What Next?
Binance officially returns to South Korea after acquiring majority of stakes in Gopax
This marks Binance’s re-entry after it terminated its operations in 2020
In December, 2020 the lead crypto exchange, Binance had announced that the firm will no longer be offering products and services in South Korea. The major reason for its termination was low transaction volumes witnessed in the country. Binance had revealed that the exchange will discontinue services related to peer-to-peer (P2P) exchanges that it operates.
However, Binance is now all set to make its entry back into South Korean territory by acquiring GOPAX exchange. It was just last month that Binance had claimed to have completed the required steps to acquire GOPAX. Gopax CEO, Lee Jun-haeng had a stake of 41.2% and Barry’s Silbert’s Digital Currency Group was a second largest shareholder of Gopax.
Binance CEO, Changpang Zhao was looking to acquire Gopax since the start of 2021. But the fall of FTX and Genesis had affected Binance’s GOPAX acquisition move as Genesis halted all its withdrawal after FTX collapsed. This decision to suspend withdrawal by Genesis put a halt to its repayment of $47 million to its GoFi customers.
Binance Acquires Major Stake In GOPAX Exchange
Now, this acquisition deal has officially opened the path for Binance to make their comeback into South Korea. The country has a huge opportunity as it boasts of having the world’s largest crypto economics and start-up community. Moreover, this expansion will allow Binance to develop its leadership in terms of Blockchain and web3 developments.
The first thing Binance plans to offer after the acquisition deal is to offer capital to GOPAX so that customers can withdraw their interest made for yield product GoFi. Binance’s funding for the GOPAX deal came from the Industry Recovery Initiative to which Binance had committed $1 billion. However, the terms of the deal are yet to be disclosed.
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