Cryptocurrency exchange Binance is reportedly in the final stages of selling its majority stake in South Korea’s Gopax to Megazone, a local cloud solutions provider. Binance initially acquired a 72.26% stake in Gopax in February last year but is now looking to reduce its ownership to around 10% to comply with financial regulators’ corporate governance requirements. The deal between Binance and Megazone is expected to be completed by the end of July, pending government approvals.
Previously, BF Labs, a South Korean public company, had shown interest in acquiring Binance’s stake in Gopax. BF Labs secured an 8.55% stake in Streami, Gopax’s operator, last year but abandoned plans to increase its stake due to financial constraints. Binance’s acquisition of Gopax’s majority stake was part of its re-entry into the Korean market after leaving in 2021, though specific details of the stake acquisition were not disclosed.
Gopax’s parent company, Streami Inc., was listed as one of the top creditors of the insolvent crypto lender Genesis Global, leading to Binance’s involvement in the exchange. Additionally, Digital Currency Group, the parent company of a U.S.-based crypto lender, was the second-largest shareholder in Gopax. The move to sell its majority stake in Gopax reflects Binance’s focus on improving its corporate governance and complying with regulatory requirements in the cryptocurrency space.
As the deal between Binance and Megazone progresses, industry experts are closely watching the implications for the Korean crypto market. Binance’s decision to reduce its ownership in Gopax could have far-reaching effects on the exchange’s operations and strategic direction. With Megazone poised to acquire a significant stake in Gopax, the Korean crypto industry may see increased competition and innovation in the coming months. Overall, the pending sale of Binance’s stake in Gopax highlights the evolving regulatory landscape for cryptocurrency exchanges globally.
