• Binance, the largest provider of digital asset trading platforms, has acquired a majority stake in the South Korean crypto exchange Gopax.
• The acquisition was funded by BNB’s co-investment project, which pledged $1 billion for the purchase.
• The goal of this move is to provide customers with the means to withdraw their assets and strengthen South Korea’s crypto and blockchain industry.
Binance Re-enters South Korea
Binance, one of the world’s largest providers of digital asset trading platforms, has announced its return to South Korea by acquiring a majority stake in the country’s crypto exchange Gopax. The acquisition was funded by BNB’s co-investment project which allocated $1 billion for the purchase.
Terms of Agreement Remains Private
Though details remain confidential, Yibo Ling, chief business officer at Binance, confirmed that they have bought a significant stake in Gopax which stopped allowing withdrawals from certain goods in November last year. Streami Inc., Gopax’s parent company and one of ten biggest known creditors of insolvent lender Genesis Global is also said to be included in this agreement.
Funding For Customer Withdrawals And Interest Payments
The main purpose behind this move is to provide customers with adequate funding so that GoFi – GOPAX’s yield product – can be used for customer withdrawals and interest payments. This initiative is designed to help revive an industry that suffered due to market volatility and the demise of competitors like FTX last year.
Exit From South Korea In 2021
It should be noted that Binance had previously exited South Korea due to poor usage and volume back in 2021 but increased its presence elsewhere in Asia when it acquired Sakura Exchange BitCoin in Japan during late 2020. Moreover, TerraUSD algorithmic stablecoin ecosystem’s collapse along with Do Kwon’s wanted espionage status further damaged sentiment surrounding digital assets within South Korea hence making it essential for firms like Binance to step up and help restore confidence within the market again.
Changpeng CZ Zhao Statement
Changpeng CZ Zhao expressed his statement hoping that this move alongside GOPAX will help strengthen the Korean crypto and blockchain industry further thus providing customers with more options regarding their asset withdrawal needs as well as interest payment methods available on GoFi yield product from GOPAX