Binance, the world’s largest cryptocurrency exchange by trading volume, is in final talks with Korean cloud service provider Megazone to sell a significant portion of its stake in Gopax.
According to a local media report, if the deal goes through, Binance will reduce its stake in Gopax, one of the five fully licensed crypto exchanges in Korea, to around 10%.
Binance acquired Gopax in February 2023 after the exchange faced liquidity issues due to problems with Genesis Global Capital, which FTX impacted. Binance stepped in to resolve Gopax’s liquidity issues by purchasing a 72.26% stake in the platform. As per its latest financial report, Binance currently holds 67.45% of Gopax.
After the acquisition, Gopax submitted a major shareholder change report to Korea’s Financial Services Commission (FSC) for its virtual asset service provider registration. However, local financial authorities have repeatedly delayed approving the ownership transfer to Binance, citing concerns over legal issues in the U.S.
The FSC has requested that Binance reduce its stake to below 10% to get the approval, ChosunBiz reported on Wednesday. Binance indicated in January that it was looking to reduce its stake in the Korean crypto exchange.
“Binance aims to sell its shares to meet the financial authority’s governance improvement requirements before the real-name account reinsurance contract with Jeonbuk Bank in August,” a source familiar with the matter told ChosunBiz, adding that negotiations are expected to conclude this month.
Previously, KOSDAQ-listed BF Labs emerged as a potential buyer for Gopax, but their acquisition plan fell through.
“We are discussing various cooperation methods, including the share purchase, awaiting government approval,” a Megazone spokesperson told ChosunBiz, noting that no specific process or timeline has been decided.
Gopax reported a 97% revenue growth year-over-year amid a market sentiment recovery in April. However, it still recorded a net loss of 51.3 billion Korean won (37 million USD) in 2023 due to debts related to deposits stuck at Genesis Global Capital.
