Binance Gets Ready for Stake Reduction in Gopax; Find Out the Reason

Binance, a prominent player in the cryptocurrency industry, has recently made a significant decision regarding its involvement with Gopax, a company based in South Korea. This move comes after Binance acquired a majority stake in Gopax in February 2023, raising questions within the industry.

Recognized as one of the largest global crypto exchange platforms, Binance is now choosing to reduce its stake in Gopax. This decision is aimed at addressing 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 will be resolved through an equity-to-equity conversion.

“We expect that we will be able to provide more specific data on the sale of the shares in some form within a month or two,” said Kim.

Binance has committed to disclosing further details on its stake reduction with Gopax within the next two months. The crypto platform plans to convert the debt, paid as GoFi repayment, into equity and sell a portion of its stake to find a practical solution to the ongoing issue.

Despite facing regulatory hurdles and legal challenges, Binance remains interested in re-entering the South Korean market. South Korea is recognized as a crucial hub for crypto exchange platforms, with significant economic potential and a thriving talent and startup community. These factors have driven Binance’s venture into the region.

However, Binance has encountered obstacles in the form of a lawsuit from the U.S. Securities and Exchange Commission (SEC), which has created uncertainty in the market. While Binance has resolved previous exits, the current SEC lawsuit remains an unresolved challenge.