- The leading crypto exchange Binance plans to buy a 41% stake in GOPAX.
- A source said that Binance planned to complete the acquisition late last year.
- The stake will be purchased from Lee Jun-haeng, Gopax’s CEO and largest shareholder.
- Binance has invested in several firms during the current bear market.
Leading crypto exchange Binance is a step closer to acquiring Korean crypto exchange GOPAX as it intends to purchase a 41% stake from the firm, according to a report by local media.
As of press time, the global exchange has completed due diligence for the acquisition. According to a source familiar with the deal, Binance originally intended to complete the purchase late last year. However, the source said negotiations about the deal had to linger till the new year owing to the ongoing discussions about the value of the stake.
The stake will be purchased from Lee Jun-haeng, the largest shareholder of Gopax. Jun-haeng is the CEO of the exchange and will continue to maintain the position for stable management.
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Recall that the exchange had announced its direct entry into the Korean market through its subsidiary.
Binance Looks to Invest in Firms Amidst the Bear Market
Since the FTX saga engulfed the crypto space, Binance has continued to save troubled firms. In November, the exchange committed $1 billion to help distressed assets amidst the crisis. However, the CEO Changpeng Zhao said the projects would only be geared towards original assets, not fraudulent ones.
This initiative saw support from numerous firms, including TRON, Huobi Global, and Poloniex. Shortly after, Binance purchased Sakura Exchange Bitcoin (SEBC), the Japanese-registered crypto exchange service provider. Although Binance failed to reveal the terms of the transaction, it affirmed its commitment to offering Japanese-regulated services through SEBC.
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In early November, the exchange also championed a strategic investment in hardware wallet maker NGRAVE. Notably, Binance noted that its investment in the wallet maker is geared towards boosting crypto self-custody.
Further, it initiated a private funding investment for GoPlus, a security infrastructure firm.
On the Flipside
- Binance also tried to acquire FTX amidst its crisis. The firm later announced the deal’s termination, citing due diligence.
Why You Should Care
A disagreement with the local regulator resulted in Binance closing its affiliate company in South Korea in December 2020. The GOPAX acquisition would allow Binance to consolidate its position in the South Korean crypto market.
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