Binance Acquires Majority Stake in GOPAX, Re-Enters South Korean Market

  • Acquiring a majority stake in the GOPAX crypto exchange will allow Binance to re-enter the South Korean market, two years after it left.
  • The funds for the acquisition came from Binance’s Industry Recovery Initiative, and will be used to enable customer withdrawals and interest payments on GOPAX.

Binance CEO Changpeng Zhao. CoinDesk

Popular cryptocurrency exchange Binance is once again entering the South Korean market through the acquisition of local crypto exchange GOPAX, Bloomberg reported on 3 February.

According to the publication, Binance has now acquired a majority stake in South Korean crypto exchange GOPAX, which last November paused withdrawals for some of its products amid the collapse of the FTX exchange. Binance now plans to spend the new capital into GOPAX to enable customer withdrawals and interest payments for the exchange’s yield product GoFi. Binance’s chief business officer, Yibo Ling, said in a statement:

“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.”

While the terms of the deal were not disclosed, Binance’s investment in GOPAX came from its Industry Recovery Initiative, which was created last year in response to the collapse of FTX, and to which Binance pledged $1 billion. The popular crypto exchange closed its affiliate in South Korea in December 2020, citing low usage of the platform, but acquiring a major stake in GOPAX will finaly see Binance re-enter the South Korean crypto market.

This is not the first time the exchange has re-entered an Asian market recently, with Binance acquiring a 100% stake in a licensed crypto service provider in Japan — Sakura Exchange BitCoin (SEBC) — in November 2022. Binance originally intended to establish a regional headquarters in Japan in 2018, but abandoned its plans after receiving a warning from the Japanese Financial Services Agency (FSA).

Related Coverage
Binance to Suspend GBP Transactions in May
  • Binance’s fiat banking partner, Skrill Limited, informed the exchange that it will no longer provide GBP on- and off-ramp to its customers starting 22 May.
  • The owner of Skrill, Paysafe, said it decided to stop offering its embedded wallet solution to Binance due to the “challenging” regulatory environment in the U.K..
March 14, 2023, 11:47 AM


Paxos in “Constructive Discussions” With SEC Over BUSD
  • Stablecoin issuer Paxos has engaged the SEC in “constructive discussions” over its allegation that BUSD is a security, ready to defend its position in litigation.
  • The company also revealed it will be ending its relationship with Binance, but noted that the decision was separate from the NYDFS and SEC investigations.
Binance Prepares to Pay Fines for Past Regulatory Violations
  • Binance’s CSO said the company was working with regulators to figure out what remediations it has to go through to make amends for past compliance violations.
  • The executive said he was “highly confident and feeling really good” about where the discussions were going, and expected to settle the charges with monetary penalties.