In a strategic move to navigate through regulatory compliance, Binance, the leading shareholder of the Korean cryptocurrency exchange Gopax, is poised to scale down its ownership within the forthcoming one to two months.
Regulatory Compliance Driving Stake Reduction
According to sources close to the matter, this decision is a direct response to the complications associated with reporting changes to virtual asset business operators (VASPs). The News1 Korea report suggests that the reduction is aimed at facilitating the approval process of Gopax’s VASP change report, which was initially submitted in March 2023 but has since faced regulatory delays.
Binance’s Continued Influence
Despite the planned reduction in stake, Binance is projected to maintain a significant control with an estimated 80% ownership remaining. This move reflects Binance’s commitment to adhere to regulatory standards while sustaining a strong position in the Korean market.
Strategic Market Moves
Binance initially acquired a majority stake in Gopax back in February 2023, marking its return to the Korean market after its 2021 exit due to low trading volumes. The specifics of the acquisition have not been made public. However, the purchase came amidst revelations that Gopax’s parent company, Streami Inc., was implicated as a major creditor in the Genesis Global bankruptcy case, with Digital Currency Group, Genesis Global’s parent company, holding the position of second-largest shareholder in Gopax.
Expansion in Asia
Following its withdrawal from South Korea in 2021, Binance has actively sought to enhance its footprint across Asia. This includes the acquisition of Sakura Exchange BitCoin in Japan, underscoring its strategy to diversify its presence in the Asian cryptocurrency markets.
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