Binance Considers Reducing Stake in Gopax Amid Regulatory Challenges

The move is expected to transition Binance from being the largest to the second-largest shareholder in Gopax, facilitating its registration renewal with South Korea's Financial Services Commission.

• Binance, the global cryptocurrency exchange, is considering reducing its stake in Gopax, a South Korean exchange, to address liquidity and regulatory challenges.
• Binance acquired a 72.26% stake in Gopax in February 2023 as a rescue operation amidst Gopax’s liquidity crisis worsened by the FTX collapse and issues with Genesis Global Capital.
• To alleviate Gopax’s debt issues, Binance plans to convert its loans to Gopax into equity and sell these shares to other firms, transitioning Binance from being the largest to the second-largest shareholder in Gopax.
• The reduction of Binance’s stake in Gopax is seen as a proactive measure to facilitate Gopax's registration renewal with the Financial Services Commission (FSC) of South Korea, which has been delayed due to concerns about Binance’s legal challenges in the United States.
• Despite the reduction, Binance is expected to retain a significant stake in Gopax, maintaining its influence in the South Korean crypto market.

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