Feb 04, 2023
Binance Re-Enters South Korea with Acquisition of Gopax
Binance, one of the world’s largest cryptocurrency exchanges, is making its return to South Korea with a new acquisition of the local crypto trading platform Gopax. The funding for the transaction came from the Industry Recovery Initiative, to which Binance had previously pledged $1 billion.
Binance CEO Changpeng Zhao said that the acquisition is integral to protecting not only crypto users, but also the crypto industry. “We hope that taking this step with GOPAX will further rebuild the Korean crypto and blockchain industry,” he said.
Binance chief business officer Yibo Ling revealed that Binance has acquired a “meaningful” equity position at Gopax, without disclosing the terms of the deal. Previous reports suggested that Binance purchased a 41% stake from Gopax’s largest shareholder, Lee Jun-hang.
The acquisition follows Gopax halting withdrawals from certain products in November 2022 due to the collapse of the FTX exchange. Gopax had halted withdrawal of principal and interest payments in its decentralized finance (DeFi) service GoFi as a result of issues experienced by now-bankrupt crypto lending firm Genesis Global Capital.
The new capital acquired by Binance will be spent into the Gopax exchange for customer withdrawals and interest payments for GoFi. The initiative also aims to promote crypto education and close collaboration with the South Korean regulators and virtual asset stakeholders.
“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,” Ling said.
The acquisition of Gopax by Binance marks the return of the exchange to South Korea, two years after it had exited the market. This move is expected to have a positive effect on the web3 space, with the potential to increase the demand for NFTs and other crypto assets in the country.
In addition, Binance is also looking to become a leader in NFT promotion and marketing in South Korea. The exchange plans to leverage its presence in the country to promote NFTs and help NFT creators to reach a wider audience. It is also looking to partner with NFT marketing agencies to help NFT creators to sell their creations on the Binance platform.
The exchange is also planning to launch its own NFT marketplace, which will allow users to buy and sell NFTs. Binance is also looking to make use of Twitter to promote NFTs, as Twitter is one of the most popular social media platforms in South Korea.
With the acquisition of Gopax, Binance is looking to become a leader in the web3 space in South Korea, and increase the demand for crypto assets in the country. The exchange is also looking to provide support to NFT creators and promote NFTs on its platform.
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