BlocksInform
The world's largest cryptocurrency exchange – BINANCE – is said to have re-established trading in the South Korean market after acquiring a majority interest in the troubled local Gopax platform.
It shut down operations in Asia in 2021, citing low interest and utilization rates among local merchants.
Back in the Republic of Korea.
Binance revealed its intentions to purchase a 41.2% stake in one of the leading crypto trading venues in South Korea – Gopax – and thus re-enter the domestic market last month. The bear market put a strain on the latter's business, which interrupted withdrawals for some commodities in November of last year. In addition, gopax's parent company, streami inc., was one of the most important creditors in the history of the bankrupt lender.
As reported by Bloomberg, Binance has completed the acquisition by taking a “meaningful” equity position in the Korean exchange. The funding was obtained through a $1 billion industry recovery initiative that was conducted in conjunction with other investors a few months ago. However, the precise details of the agreement remain unknown.
Yibo Ling – Chief Business Officer at Binance – said the main goal of the deal is to establish a “fundamental thrust” among local users and “make sure that any customers who want to withdraw their assets have the ability to do so.”
CEO Changpeng Zhao (CZ) raised hopes that Binance’s return to the East Asian country will “rebuild the Korean crypto and blockchain industry.”
Both South Korea and Binance went through a turbulent 2022. The country was in the spotlight when Terra’s collapse sent shock waves through the entire cryptocurrency sector. The project's algorithmic stability – and its natal coin – luna – has fallen to near zero, resulting in heavy losses for investors.
The co-founder of Terra – do kwon (considered by some to be the main cause of the disaster) – was hesitant to cooperate with authorities and regulatory agencies and left his country. While Interpol issued a red notice on the 31-year-old, his whereabouts remain a mystery. Recent sources indicated he could be hiding in Serbia.
The toughest times for binance came in December (several weeks after ftx ended). Many participants have lost confidence in centralised exchanges and have begun to withdraw funds in bulk. At one point, daily withdrawals from Binance surpassed $8 billion.
However, the platform has responded, while cz has assured that its company could serve as a stable depository. He also claimed that the massive wave of retirements was the result of a fud.
Binance to Re-Enter Japan, too
The platform sought a permit to return to the Japanese market in September 2022 after staying away from it for four years.
It strengthened its presence in the “Land of the Rising Sun” by purchasing the Sakura Exchange BitCoin (SEBC) two months later. Takeshi Chino, Managing Director at Binance Japan, said:
We will actively work with regulators to develop our combined stock market in a manner that is consistent with local users. We look forward to helping Japan play a leadership role in the field of cryptography."
