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Binance, the world’s largest cryptocurrency exchange, has injected capital into distressed South Korean crypto exchange GOPAX two years after closing its affiliates in the country due to a lack of protection.
Bloomberg reported that the crypto exchange bought a majority stake in GOPAX. at the beginning of the month, Financial figure reported that Binance is making plans to acquire GOPAX CEO Lee Jun-Haeng’s 41.2% majority stake in the crypto exchange.
However, in a blog post published on Friday, Binance only disclosed the investment in GOPAX without specifying the amount of capital to be issued. Top crypto exchanges, however, point out that the investment came from a $1 billion cryptocurrency recovery fund that launched in November last year after the collapse of the once leading crypto exchange, FTX.
The FTX collapse created a contagion that affected a number of digital asset companies including BlockFi and Genesis. Crypto lender Genesis suspended withdrawals on its platform in November, citing a “liquidity crisis.” GOPAX is also making a similar move to GoFi output products because of its exposure to Genesis.
Watch the recent FMLS22 session on the ongoing transformation in the crypto market structure.
However, Binance’s new capital on GOPAX means the South Korean crypto exchange can fund GoFi users’ withdrawal requests on deposits and staked interest. GOPAX has been working with local regulators and industry stakeholders since last year in an effort to raise funds, said Binance.
“We hope that taking this step with GOPAX will further build the Korean crypto and blockchain industry,” said Changpeng Zhao, Co-Founder of Binance, in a blogpost.
The leading crypto exchange also noted that they remain committed to partnering with regulators and crypto stakeholders in South Korea “to explore how Binance can leverage its technology and liquidity to support the local ecosystem.”
Binance Seeks a Global Presence
Binance’s re-entry into South Korea through its investment in GOPAX is one of several expansive endeavors that the leading exchange has made in recent months. Earlier this month, the exchange got its Swedish registration, marking its 7th regulatory license in the European Union.
Worldwide, digital asset companies are now licensed in 15 jurisdictions. This includes the recent license acquisition in Japan following the full acquisition of Sakura Exchange Bitcoin, a crypto platform regulated by the Japanese Financial Services Agency. Additionally, Binance recently introduced off-exchange settlements to its institutional investors.
Binance, the world’s largest cryptocurrency exchange, has injected capital into distressed South Korean crypto exchange GOPAX two years after closing its affiliates in the country due to a lack of protection.
Bloomberg reported that the crypto exchange bought a majority stake in GOPAX. at the beginning of the month, Financial figure reported that Binance is making plans to acquire GOPAX CEO Lee Jun-Haeng’s 41.2% majority stake in the crypto exchange.
However, in a blog post published on Friday, Binance only disclosed the investment in GOPAX without specifying the amount of capital to be issued. Top crypto exchanges, however, point out that the investment came from a $1 billion cryptocurrency recovery fund that launched in November last year after the collapse of the once leading crypto exchange, FTX.
The FTX collapse created a contagion that affected a number of digital asset companies including BlockFi and Genesis. Crypto lender Genesis suspended withdrawals on its platform in November, citing a “liquidity crisis.” GOPAX is also making a similar move to GoFi output products because of its exposure to Genesis.
Watch the recent FMLS22 session on the ongoing transformation in the crypto market structure.
However, Binance’s new capital on GOPAX means the South Korean crypto exchange can fund GoFi users’ withdrawal requests on deposits and staked interest. GOPAX has been working with local regulators and industry stakeholders since last year in an effort to raise funds, said Binance.
“We hope that taking this step with GOPAX will further build the Korean crypto and blockchain industry,” said Changpeng Zhao, Co-Founder of Binance, in the blog post.
The leading crypto exchange also noted that they remain committed to partnering with regulators and crypto stakeholders in South Korea “to explore how Binance can leverage its technology and liquidity to support the local ecosystem.”
Binance Seeks a Global Presence
Binance’s re-entry into South Korea through its investment in GOPAX is one of several expansive endeavors that the leading exchange has made in recent months. Earlier this month, the exchange got its Swedish registration, marking its 7th regulatory license in the European Union.
Worldwide, digital asset companies are now licensed in 15 jurisdictions. This includes the recent license acquisition in Japan following the full acquisition of Sakura Exchange Bitcoin, a crypto platform regulated by the Japanese Financial Services Agency. Additionally, Binance recently introduced off-exchange settlements to its institutional investors.
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