The popular cryptocurrency exchange Binance is making another return to South Korea. This time through a takeover of the local crypto exchange called Gopax.
Majority interest acquired
There has been a bit of turmoil at the crypto exchange Gopax for a while now. Binance has now acquired a majority stake in this South Korean crypto exchange, bringing them right back into the South Korean market. Binance has been away from this market for about 2 years.
Binance would also have acquired a meaningful equity position. Unfortunately, the specific terms involved with the deal have not been disclosed.
Funding for the transaction was found to come from a Finance-initiated investment project known as the Industry Recovery Initiative. Binance has reportedly committed $1 billion to this.
Problems at Gopax
Gopax has had some problems for a long time. In November of last year, it had to halt withdrawals of certain products when the FTX exchange also collapsed. Binance wants to put new capital into the exchange, which will allow customer withdrawals again. Binance supplemented this by saying the following:
The fundamental thrust of this deal was to support clients and ensure that clients who wish to withdraw their assets have the option to do so.