Binance plans to reduce its majority stake in South Korean crypto exchange Gopax over the next two months.
Binance Sells Its Stake in South Korea's Crypto Exchange Gopax
Binance, the world's largest crypto exchange, announced in a statement that it plans to reduce its shareholding in Gopax, one of South Korea's largest crypto exchanges.
Binance acquired a majority stake in Gopax in February last year to re-enter South Korea's crypto market, but faced setbacks from the South Korean Financial Services Commission (FSC) and the US SEC.
Crypto exchange Binance has announced plans to sell its stake in Gopax to eliminate issues related to changes in reporting requirements for virtual asset business operators (VASPs).
Binance will announce details regarding the reduction of shares in Gopax within the next two months. GoFi plans to convert the loan paid as repayment into equity and sell part of the stake along with the debt portion of Gopax to resolve the issue.
Steve Young Kim, Binance's Asia-Pacific director, talks about the lack of clear guidelines for new virtual asset reporting. He said the reduction in stake was a preemptive measure while he sought a meaningful dialogue with financial authorities.
“Gopax's large debt is expected to be partially resolved through equity-to-equity conversion.” “We hope to be able to provide more specific data on sales of shares in a month or two.” said.
*This is not investment advice.