Binance Invests in Crypto Exchange GOPAX Years after South Korea Exit

Binance, the world’s largest cryptocurrency exchange, has injected capital into the distressed South Korean crypto exchange, GOPAX, two years after it shut down its affiliate firm in the country due to low patronage.

Bloomberg reports that the crypto exchange purchased a majority stake in GOPAX. Earlier in the month, Finance Magnates reported that Binance was making plans to acquire the CEO of GOPAX, Lee Jun-Haeng's 41.2% majority shares in the crypto exchange.

However, in a blogpost published on Friday, Binance only disclosed investing in GOPAX without stating the amount of capital to be released. However, the top crypto exchange pointed out that the investment originates from the $1 billion cryptocurrency recovery fund it launched in November last year in the aftermath of the collapse of the once-leading crypto exchange, FTX.

FTX’s collapse created a contagion that affected a number of digital assets firms, including BlockFi and Genesis. The crypto lender Genesis suspended withdrawals on its platform in November, citing a “liquidity crunch." On top of that, GOPAX made a similar move to its yield product GoFi because of its exposure to Genesis.

Watch the recent FMLS22 session on ongoing transformation in the crypto market structure.

Binance Says Withdrawal Will Restart on GOPAX

However, Binance’s new capital in GOPAX means that the South Korean crypto exchange can fund GoFi users’ withdrawal requests on staked deposits and interests. GOPAX has been working closely with local regulators and industry stakeholders since last year in an effort to raise funds, Binance said.

“We hope that taking this step with GOPAX will further build the Korean crypto and blockchain industry,” Changpeng Zhao, Binance’s Co-Founder, noted in the blogpost.

Moreover, the leading crypto exchange noted that it remains committed to partnering with regulators and crypto stakeholders in South Korea “to explore how Binance can leverage its technology and liquidity to support the local ecosystem.”

Binance Seeks Global Presence

Binance’s re-entry into South Korea through its investment in GOPAX is one of several expansionary efforts the leading exchange has made in recent months. Earlier this month, the exchange received its Swedish registration, marking its 7th regulatory license in the European Union.

Across the globe, the digital asset company is now licensed in 15 jurisdictions. This includes its recent license acquisition in Japan following its complete acquisition of Sakura Exchange Bitcoin, a crypto platform regulated by the Japanese Financial Services Agency. In addition, Binance recently introduced off-exchange settlement to its institutional investors.