Summary
Binance is reportedly in discussions to reduce its stake in South Korean crypto exchange Gopax in order to address Gopax’s liquidity issues and compliance concerns. Binance acquired a 72.26% stake in Gopax in February 2023 to resolve its liquidity issues related to the FTX collapse. The plan now is for Binance to convert its loans to Gopax into equity and sell the shares to other firms, which will help ease Gopax’s debt issues. This move will also result in Binance stepping down from being the largest shareholder of Gopax. The plan is expected to help Gopax renew its registration with the local regulator, the Financial Services Commission. Further details will be provided within two months.
Key Points
1. Binance is in discussions to reduce its stake in South Korean crypto exchange Gopax to address liquidity issues and compliance concerns following the FTX collapse. This move is aimed at resolving Gopax’s debt issues.
2. Binance plans to convert its loans to Gopax into equity and then sell these shares to other firms. This will help ease Gopax’s debt burden and reduce Binance’s stake in the exchange.
3. Gopax, which was acquired by Binance in February 2023, is working to secure funds to recover its lost deposits and renew its registration with the local regulator, the Financial Services Commission. The delay in Gopax’s registration approval is due to concerns regarding Binance’s legal issues in the United States.