The major cryptocurrency exchange Binance is planning to reduce its ownership stake in the South Korean crypto trading platform Gopax over the next one to two months. This move aims to resolve regulatory issues that arose after Korean authorities delayed approving Gopax’s report about changes to its virtual asset business operations and ownership.
Binance acquired a majority stake in Gopax in February 2023 when it re-entered the Korean cryptocurrency market, which it had exited in 2021 due to low usage and trading volume. The exact percentage of Binance’s stake in Gopax was not disclosed.
By selling off part of its stake, Binance hopes to appease Korean regulators who have concerns about the company’s involvement in Gopax. Even after reducing its stake, Binance is expected to still retain around 80% ownership of Gopax.
The regulatory scrutiny comes amid reports that Gopax’s parent company was a major creditor to the now-insolvent crypto lender Genesis Global. Meanwhile, Digital Currency Group, the parent of the troubled US lender Genesis, was Gopax’s second-largest shareholder.
Binance has not yet released an official statement about its plans to reduce its stake in Gopax. The move shows Binance’s efforts to expand its presence across Asia while also trying to satisfy local regulators.
