TronWeekly

Crypto World News

You are here: Home / Archives for Gopax

Gopax

Regulators Scrutinize Binance’s Acquisition Of Gopax, Citing High Risk Of Financial Crimes

by

Regulators may require Binance, the leading crypto exchange, to reapply for certification following the acquisition of Gopax, as reported by Chosun Biz. The report suggests that the financial authorities are concerned about the high risk of financial crimes, such as illegal money laundering and large-scale damage to investors, due to the lack of transparency in Binance’s overall management structure. 

Binance’s Entry Into The Korean Market 

A high-ranking official from the financial authorities commented that Binance’s entry into the Korean market could result in the outflow of national wealth through the distribution of unverified overseas listed coins.

If Binance starts an exchange business in Korea, it will be difficult to properly manage and supervise it, and there is a possibility of outflow of national wealth through the distribution of several unverified overseas listed coins. We are considering regulating it.

Binance is set to enter the country by acquiring a 40% stake in Gopax, the fifth-largest exchange in Korea, and replacing key executives with Binance personnel. 

The financial authorities are considering measures to re-accredit Gopax as a virtual asset operator (VASP) or regulate it by not giving out real-name accounts at commercial banks. 

Jeonbuk Bank is said to be contemplating whether to continue providing accounts to Gopax even after the leading exchange’s acquisition becomes official. The exchange has veiled most of the company’s information, and its basic corporate governance and financial information are not disclosed.

The lack of transparency has led to concerns that the exchange could be exposed to similar risks as FTX, the world’s third-largest exchange, which declared bankruptcy in November last year. As a result, FTX suffered astronomical losses due to management’s embezzlement and breach of trust.

Additionally, the exchange has recently faced sanctions from financial authorities worldwide. The New York State Department of Financial Supervision ordered Paxos Trust, which issues BUSD, Binance’s stablecoin, to stop issuing coins. Reuters reported that Binance is under investigation by US judicial authorities on charges of illegal money laundering.

However, some in the financial market are critical of the domestic financial authorities’ attempt to regulate the leading exchange’s entry into the market. With Upbit of Dunamu monopolizing the virtual asset market, releasing “catfish” such as Binance is necessary to change the abnormal market structure.

Currently, according to the report, Upbit holds an 88% share of the domestic virtual asset market, with Bithumb and Coinone combined barely exceeding 10%. Korbit of Gopax, a small exchange, has a market share of less than 1%.

Related Reading | Bitcoin’s Lightning Network Gains Momentum As Adoption Surges In Emerging Markets 

GOPAX Acquisition, Binance Makes Major Comeback To South Korean Market: Report

by

Binance, the world’s largest crypto exchange, has made a major move by acquiring a significant equity position in the South Korean cryptocurrency exchange GOPAX. It marks Binance’s return to the Korean crypto market after it exited two years ago due to low usage and volume, as reported by Bloomberg.

However, this GOPAX acquisition was funded through the largest exchange’s Industry Recovery Initiative, a co-investment project led by Binance, which has pledged $1 billion. No terms of the deal have been disclosed.

Yibo Ling, Binance’s chief business officer, stated that the firm’s investment in GOPAX was “meaningful” and aimed to support customers and ensure they could withdraw their assets. GOPAX had suspended withdrawals from certain products in November.

According to Ling’s statement:

The fundamental thrust of this deal was to support customers and make sure that any customers who want to withdraw their assets have the ability to do so.

Binance & The Korean Crypto Industry

South Korea’s crypto market was heavily impacted by the crypto rout of last year and the failure of TerraUSD, a local algorithmic stablecoin ecosystem. As a result, many Korean investors suffered losses, and its founder, Do Kwon, is now a fugitive.

Binance’s acquisition of GOPAX is an attempt to rebuild the Korean crypto and blockchain industry. Changpeng Zhao, Binance’s founder and CEO expressed hope that the move will help revive the market.

In addition to acquiring the majority stake in GOPAX, Binance plans to inject capital into the exchange to allow for customer withdrawals and interest payments for GOPAX’s yield product, GoFi.

Binance was hit by outflows last year due to the market slump and the collapse of rival FTX. However, this year’s rebound in token prices has stabilized market sentiment. The exchange recently expanded its footprint in Asia with the purchase of Sakura Exchange BitCoin in Japan.

With its investment in GOPAX, the Korean crypto market may see new growth in the coming months. It will be interesting to see how this acquisition impacts the wider crypto industry in the future.

However, this acquisition of GOPAX shows the company’s commitment to supporting the crypto industry and restoring confidence in markets, particularly in South Korea. The move is a positive step towards rebuilding the Korean crypto and blockchain industry.

Related Reading | Ethereum Reaches New High With 3040 ETH Burn, Led by Uniswap & OpenSea

Binance & Gopax Acquisition Status Uncertain, Repayment of Funds at Risk

by

An employee of Binance has reportedly stated that the acquisition of Gopax, a South Korean-based crypto exchange, has yet to be determined, according to WU Blockchain.

It has been noted that Gopax is currently in need of approximately $47 million in order to repay its wealth management product customers. If Binance is unable to provide the necessary funding, it is possible that investors may experience losses.

It has been previously reported by TronWeekly that Binance, a leading global cryptocurrency exchange, is planning to enter the Korean market through the acquisition of Gopax, a Korean exchange. The acquisition was reportedly in its final stages, with due diligence completed and procedures being confirmed.

Binance Acquisition Of Gopax Exchange

South Korean media outlet Chosun has confirmed that cryptocurrency exchange GoPax must pay back up to KRW 60 billion (approx. 47 million) to its customers.

According to the report, following the collapse of FTX in November of last year, Genesis Global Capital, the management company for GoFi, ceased repayment and GoFi deposits became insolvent. Genesis has repeatedly promised to repay the funds, but it is uncertain if they will be able to do so.

The funds, which include principal, interest, and delay interest, must be returned for both fixed and free-form products and are based on the closing price of virtual assets at the time of payment suspension. 

On November 23, KRW 33.8 billion was calculated as the amount to be repaid for suspended fixed-type products, made up of KRW 33.1 billion in principal and KRW 700 million in interest. 

When this amount is subtracted from the total repayment fund of KRW 60 billion, KRW 26.2 billion remains. This remaining amount is based on the closing price on November 16 and corresponds to the repayment of principal and interest for free-form products.

The acquisition of Gopax by Binance is expected to be equal to or greater than the total amount of GoFi repayments. However, if GoPax is unable to secure the necessary funds from Binance, which is reportedly in talks to acquire the company, domestic investors may suffer losses. 

Binance To Enter Korean Crypto Market By Acquiring Gopax Exchange

by

Binance, the world’s largest cryptocurrency exchange, is reportedly planning to enter the Korean market by acquiring Gopax, a Korean exchange. According to Decenter, Binance has completed its due diligence for the acquisition and is currently in the process of finalizing the deal, including confirming procedures.

According to a report by Xangle Research, the global cryptocurrency market has experienced significant growth over the past three years, with a year-over-year increase of 200%.

The report also examines the Korean crypto market in greater detail, which has also significantly grown in recent years. It is currently the third-largest market in terms of Bitcoin trading volume, at 8.7%.

Source: Xangle

According to an official with industry knowledge cited in the report:

We originally planned to announce the acquisition around Christmas last year, but we are in the process of final discussions on the value of the stake.

The report stated that Binance plans to purchase a 41.2% stake in Gopax from CEO Lee Jun-haeng, the largest shareholder, but will maintain the current management structure for stable operation.

Binance & The Koren Market

Gopax is one of the major Korean exchanges that enables users to buy and sell crypto using the Korean won. In the past year, it linked its real-name account to Jeonbuk Bank and began operating as a won currency exchange. 

Additionally, it had been actively expanding its domestic business but faced a liquidity crisis due to negative events such as global economic downturns and the bankruptcy of FTX.

Binance has been trying to enter the Korean market for a while but has been unable to do so due to strict regulations from financial authorities related to anti-money laundering and investor protection. As a result, it has been pursuing an alternative route to enter the market.

Upbit now dominates the majority of the local cryptocurrency market, but if strong capitalist Binance starts aggressive marketing with Gopax in the forefront, perceptions might drastically alter.

However, the report also mentioned that Binance declined to provide an official statement on the acquisition, and Gopax stated that they are unable to confirm the facts.

It is believed that the partnership between Binance and Gopax will expand the investment options for domestic investors and facilitate the international expansion of domestic projects.

Related Reading | Chiliz (CHZ) Resists Bear Market, Orbeon Protocol (ORBN) Powers Through With 805% Price Surge