Binance, a major cryptocurrency exchange, is nearing the final stages of negotiations to reduce its ownership in Gopax, a South Korean exchange, from 72.6% to as low as 10%, according to local reports.
Reportedly, Binance aims to enhance Gopax’s governance structure in compliance with local financial regulations. The Chosun Ilbo, a South Korean news agency, cited an industry insider on July 11 confirming Binance’s intent to divest its majority stake.
The move precedes Gopax’s upcoming renewal of its real-name account contract with Jeonbuk Bank in August 2024. Binance initially acquired its stake in February 2023 with plans to re-enter the South Korean market but faced regulatory challenges that prevented further investment.Sought comment from Binance regarding the stake sale but received no response by the time of publication.
Summary Review: Binance is in the process of significantly reducing its majority stake in Gopax from 72.6% to around 10%, as reported by The Chosun Ilbo. This decision aligns with the company’s efforts to meet South Korean financial regulations and improve governance. The move comes ahead of Gopax’s contract renewal with Jeonbuk Bank and follows Binance’s previous difficulties in re-entering the South Korean market. The sale is a strategic step for Binance as it navigates regulatory landscapes and seeks to streamline its operations.
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