Binance Nears Sale of Gopax Stake to Korean Cloud Provider Megazone

Binance, the global cryptocurrency exchange, is on the brink of finalizing a deal to sell its majority stake in Gopax, a prominent South Korean crypto exchange, to Megazone, a leading cloud infrastructure provider in South Korea. This strategic move aims to streamline Binance’s operations in compliance with regulatory requirements.

Sources reveal that Binance, which secured a 72.26% stake in Gopax in February last year, is negotiating to reduce its ownership in Streami, Gopax’s operator, from 72.6% to about 10%. This reduction aligns with efforts to enhance corporate governance as mandated by financial regulators. The deal with Megazone is anticipated to be finalized by the end of July.

A spokesperson for Megazone commented to the Chosun Daily, stating that the “stake acquisition” is still “subject to government approvals.” This underscores the regulatory oversight involved in such high-profile transactions within the cryptocurrency space.

Previous Bidders and Financial Constraints

Megazone was not the first contender for Binance’s stake in Gopax. BF Labs, formerly known as City Labs, had also shown interest. In September last year, BF Labs acquired an 8.55% stake in Streami through a capital increase and stock purchase, positioning itself as the second-largest shareholder. However, financial limitations forced BF Labs to abandon plans to increase its stake further.

Binance’s acquisition of the majority stake in Gopax marked its re-entry into the South Korean market after a prior exit in 2021. Although the financial details of this acquisition were not disclosed, the move was significant for Binance’s market strategy.

This sale comes on the heels of reports that Streami Inc., Gopax’s parent company, was among the top ten creditors of the bankrupt crypto lender Genesis Global. Digital Currency Group, the parent company of Genesis, was the second-largest shareholder in Gopax, adding complexity to the ownership dynamics.

By reducing its stake in Gopax, Binance aims to comply with regulatory expectations and streamline its operations in South Korea. This strategic move highlights the evolving landscape of the cryptocurrency market, where regulatory compliance and corporate governance play crucial roles.