Binance Reopens In South Korea’s Crypto Market Via Stake In GOPAX Exchange


The world’s largest cryptocurrency exchange, Binance, has always been used to making it to the headline most times for its new acquisition. Today’s news is no different as Binance is set to return to South Korea’s crypto market, given its stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Binance shut down its operations in South Korea in 2021 as a result of bothersome obstacles such as low usage and volumes from South Korean consumers. But its recent stale in GOPAX serves as Binance’s reappearance in the East Asia-based country. 

Binance To Revive GOPAX?

Last November, the GOPAX exchange got into some financial trouble after bankrupt crypto lending firm Genesis refused to pay GOFI users. GOFI is a yield-generating product offered by GOPAX alongside collaboration with Genesis. The South Korea-based cryptocurrency exchange eventually suspended the withdrawal of principal and interest payments in the Defi service, GOFI.

Reportedly, the suspension was a result of Genesis Global Capital, which is the partner, shutting acquisitions and initiating new loans at its lending arm Genesis Global Trading. Genesis disclosed the GOFI withdrawal suspension citing abnormal withdrawal requests, just a week after the FTX crash. 

GOPAX’s parent company Streami Inc. is part of the top 10 largest known creditors of the bankrupt crypto lender firm Genesis Global. According to a blog post by GOPAX, Genesis’s parent company, Digital Currency Group, is the second largest shareholder of GOPAX. 

While the South Korean exchange is still very well in trouble, Binance chose to acquire it. Yibo Ling, the chief business officer at Binance, revealed that the company had taken a meaningful equity position in GOPAX. Notably, Binance purchased a stake in GOPAX from the Industry Recovery Initiative, which it founded late last year following the FTX collapse. 

The company plans to infuse funds into GOPAX to allow customers to withdraw their interest payments in GOPAX’s yield product GoFi. Ling noted, “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.”

Flashback To Binance Shut Down In South Korea

In November 2021, Binance shut down operations in South Korea. The discontinued operations included  Binance South Korean Won (KRW) trading pairs service, KRW payment options, P2P merchant applications, and Korean language website support. 

As reported by Bitcoinist, the firm’s decision could be related to the notice from the South Korean Financial Intelligence Unit. Binance CEO Changpeng “CZ” Zhao noted in a statement that he hopes the move to return to South Korea through “GOPAX will further rebuild the Korean crypto and blockchain industry.”

While Binance continues to acquire and increase its investment in the crypto sector, the exchange’s native token BNB has demonstrated great potential. After surviving the ubiquitous FUD (fear, uncertainty, doubt) from the industry late last year, BNB is beginning to rebound.

Binance coin (BNB) price chart on TradingView
Binance coin (BNB) price is moving sideways on the 4-hour chart. Source: BNB on

Since the beginning of the year, BNB has surged over 30%, breaking above the $300 zone. Though the crypto asset has moved significantly in the past weeks, it is still down 52% from its all-time high of $686, seen in May 2021. At the time of writing, BNB trades at $325.95, down 1.2% in the last 24 hours.

Featured image from Shutterstock, Chart from TradingView

#Binance #Reopens #South #Koreas #Crypto #Market #Stake #GOPAX #Exchange


Related Posts

South Korea to examine crypto staking services following the Kraken case

[ad_1] As reported by a local publication on Feb. 15, Korean financial authorities are looking into the staking services market. However, as the unnamed official specified to…

Elon Musk Hints At New Twitter CEO At End-2023, Causes FLOKI To Skyrocket 45%

[ad_1] Elon Musk announced in December of last year that he will step down as CEO of Twitter once a replacement is found, but will continue to…

Bitcoin eyeing ‘next big move’ which could see $19K retest — analyst

[ad_1] Bitcoin (BTC) is headed to either $28,000 or $19,000 and this week could decide all, fresh analysis says. In Twitter comments on Feb. 15, popular trader…

Messari Analyst Reveals Why Polygon Is Set For Steady Growth

[ad_1] Through his tweet today, Messari analyst Tom Dunleavy singled out Polygon as a top-performing crypto asset and further described traits that set the cryptocurrency for further…

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

[ad_1] Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

[ad_1] A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to…

Leave a Reply

Your email address will not be published. Required fields are marked *