Subscribe to our newsletter!
- Binance has acquired a majority stake in South Korean crypto exchange GOPAX as part of its Industry Recovery Initiative to support companies negatively affected by last year’s events. Binance’s investment will allow GOPAX to secure any potential GoFi users’ withdrawal requests against all staked deposits, including interest.
- Binance and GOPAX will work together to improve users’ education and blockchain awareness through Binance Academy. Binance expressed its commitment to collaborate with South Korean regulators and virtual asset stakeholders to support the local ecosystem.
- Binance has been actively expanding its presence around the world and has recently launched Binance Tax, a tax reporting tool, and enabled users in the Philippines to convert their crypto from their accounts and deposit it to their local bank accounts. However, the exchange is still not legally registered in the country.
Two years after pulling out of the Korean market, global cryptocurrency exchange Binance is now back as it acquired a majority stake in the South Korea-based crypto exchange GOPAX. The investment of Binance to the Korean exchange was part of its Industry Recovery Initiative (IRI).
“We are joining forces to protect our users and make sure we offer a responsible environment for cryptocurrency investments in the country,” Biannce CEO Changpeng Zhao tweeted.
To mitigate the effects of halting the withdrawal of principal and interest payments in GOPAX’s decentralized finance (DeFi) service GoFi, Binance will give capital into GOPAX to allow the exchange to secure in full any potential GoFi users’ withdrawal requests against all staked deposits, including interest.
The withdrawal halt, which was executed last November 2022, cites the consequence of the upstream challenges experienced by Genesis Global Capital, LLC, the mishap led to GOPAX closely working with local regulators and industry partners in an effort to raise funds to make affected users whole.
In addition, Binance will also work closely with GOPAX to improve their users’ education and blockchain awareness through Binance Academy.
Accordingly, Binance expressed their commitment to collaborate with the South Korean regulators and virtual asset stakeholders to explore how the exchange can utilize its technology and liquidity to support the local ecosystem. In 2021, Binance KR terminated its local exchange operations due to low usage and volume with limited trading pairs of BKRW, resulting in limited liquidity for its users.
“Binance has a responsibility to protect our users, as well as our industry. The Industry Recovery Initiative was created to support promising companies that were negatively impacted by the events of last year. We hope that taking this step with GOPAX will further rebuild the Korean crypto and blockchain industry,” CZ said in a statement.
Last year, Binance signed a Memorandum of Understanding (MoU) with the City of Busan, where the exchange will support the city in creating infrastructure and providing the technology to develop its own blockchain ecosystem.
Recently, the crypto exchange launched Binance Tax, a tax reporting tool, to help users calculate their tax obligations on crypto transactions. (read more: Binance Tax Launched so Users Can Calculate Their Crypto Taxes)
Binance has been actively making its presence known in different countries around the world. Currently, it has affiliations in Indonesia, Japan, Spain, New Zealand, France, Bahrain, Abu Dhabi, Dubai, Kazakhstan, Poland, Lithuania and Cyprus.
In the Philippines, since it was affected by the three-year moratorium of the Bangko Sentral ng Pilipinas (BSP), which will be active until 2023, the exchange is still not legally registered. In a report, Binance revealed that it is trying to acquire a local company with the necessary licenses.
This article is published on BitPinas: Binance Acquires Majority Stake in Korean Crypto Exchange GOPAX
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.