Crypto exchange giant Binance is set to resume its operations in South Korea after acquiring a major stake in the local exchange GOPAX.
Binance Holdings Ltd., the world’s leading digital asset trading platform, is making a triumphant return to South Korea with its recent acquisition of a majority stake in GOPAX. After exiting the market two years ago, Binance has now returned to claim its throne as the king of cryptocurrency exchanges in the country. With its deep pockets and extensive experience, the company is well-positioned to turn GOPAX around and help it regain its status as a major player in the South Korean crypto scene. This acquisition marks an exciting new chapter for both Binance and GOPAX.
Binance Taps On GOPAX To Re-Enter The South Korean Crypto Space
South Korea is a land of opportunities and an innovation hub in the crypto world! With a booming cryptocurrency market, a deep pool of talented individuals, and a thriving startup scene, it’s no wonder that Binance has set its sights on this incredible country. Binance recognizes the astonishing potential of South Korea and is eager to tap into its rich resources and talented workforce.
Binance is making a bold move in the world of cryptocurrency with its recent investment in GOPAX. Yibo Ling, the Chief Business Officer at Binance, has announced that the firm has taken a “meaningful” stake in the troubled exchange and is ready to turn things around. This investment is part of Binance’s larger Industry Recovery Initiative, a co-investment project led by Binance with a $1 billion commitment. With this initiative, Binance is showing its unwavering commitment to the future of the cryptocurrency industry and its determination to help it thrive, even in the face of challenges. The terms of the investment may be undisclosed, but one thing is clear: Binance is all in on GOPAX, and the future is looking bright for this dynamic duo.
GOPAX Takes Charge To Lead With Binance
Binance’s journey in South Korea has been exciting and filled with triumphs and challenges. In 2019, the company made its mark by setting up an office in the heart of the Korean crypto scene. From April 2020 to December of the same year, Binance offered its cutting-edge crypto trading services to the local market, giving Korean traders access to the world’s leading digital asset platform. However, things took a turn in 2021 when local regulators imposed restrictions on unregistered foreign exchanges. Despite these challenges, Binance always retained its commitment to the Korean market and made the difficult decision to discontinue global trading services for the South Korean won. But this setback is only temporary, and Binance is determined to find new ways to serve the Korean market and continue to be a leader in the world of crypto.
In an interview, CZ said, “We are looking at re-entry into Korea. A good time for recruiting key talent and M&A is approaching. In order for Web 3.0 to become a reality, popularization is ultimately the key, and Binance’s ultimate goal is to become a platform for this.”
GOPAX’s parent company, Streami Inc., is one of the ten largest creditors of the bankrupt lender Genesis Global. GOPAX had a partnership with Genesis to offer a yield product, but in November, they had to stop customers from taking their money out. According to a blog post, the parent company of Genesis, Digital Currency Group, is also a big shareholder of GOPAX.
Binance is stepping up to the plate to support GOPAX and its customers in a big way. The company is injecting capital into the exchange to ensure that those who have invested in GOPAX’s GoFi yield product can get their withdrawals and interest payments without hiccups. Ling said, “The fundamental thrust of this deal was to support customers and make sure that any customers who want to withdraw their assets have the ability to do so.”
South Korea’s crypto market has faced some tough times in recent years, with the crypto market crash and the downfall of Do Kwon’s TerraUSD stablecoin ecosystem leaving a lasting impact. The aftermath of these events left many Korean investors reeling, resulting in Kwon becoming a fugitive. However, Binance’s CEO promises a bright future as he states, “We hope that taking this step with GOPAX will further rebuild the Korean crypto and blockchain industry.”
