Binance, a prominent cryptocurrency exchange with a global presence, has recently made its return to the South Korean market with its acquisition of the local crypto trading platform, Gopax.
As reported by Bloomberg on February 3, Binance has acquired a majority stake in the beleaguered crypto exchange, marking its reentry into the South Korean market after a two-year absence.
The funding for the deal came from Binance’s Industry Recovery Initiative, to which Binance pledged $1 billion.
Binance’s Chief Business Officer, Yibo Ling, confirmed the acquisition and revealed that Binance has acquired a “meaningful” equity stake in Gopax, although the details of the deal remain undisclosed. The acquisition will provide much-needed support to Gopax, which experienced a temporary halt in withdrawals from certain products in November 2022.
With this new capital, Binance intends to invest in Gopax, enabling customer withdrawals and interest payments for Gopax’s yield product, GoFi. Ling emphasized that the main goal of the acquisition is to support customers and ensure they can withdraw their assets smoothly.
This is a developing story, and more updates will be provided as they become available.