{"id":17262,"date":"2023-02-04T02:06:38","date_gmt":"2023-02-04T02:06:38","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-returns-to-korean-crypto-market-invests-in-troubled-exchange-gopax-exchanges-bitcoin-news\/"},"modified":"2023-02-04T02:06:38","modified_gmt":"2023-02-04T02:06:38","slug":"binance-returns-to-korean-crypto-market-invests-in-troubled-exchange-gopax-exchanges-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-returns-to-korean-crypto-market-invests-in-troubled-exchange-gopax-exchanges-bitcoin-news\/","title":{"rendered":"Binance Returns to Korean Crypto Market \u2014 Invests in Troubled Exchange Gopax \u2013 Exchanges Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Binance has returned to the South Korean cryptocurrency market after two years with a \u201cmeaningful\u201d investment in a local, licensed crypto exchange. Gopax fell into trouble following the collapse of crypto exchange FTX and the bankruptcy filing of crypto lender Genesis Global.<\/strong><\/p>\n

Binance Invests in Troubled Korean Crypto Exchange<\/h2>\n

Cryptocurrency exchange Binance announced Friday that it has invested in Gopax, a licensed crypto exchange in South Korea. The investment marks Binance\u2019s return to the Korean crypto market, which the company exited two years ago, citing low usage and trading volume.<\/p>\n

Gopax halted withdrawals of both principal and interest payments from its decentralized finance (defi) service \u201cGofi\u201d in November last year \u201cas a consequence of the upstream challenges experienced by Genesis Global Capital LLC,\u201d Binance detailed. \u201cSince then, Gopax has been working closely with local regulators and industry partners in an effort to raise funds to make affected users whole.\u201d The global crypto exchange explained:<\/p>\n

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As part of this transaction, Binance will inject capital into Gopax with the objective of securing in full any potential Gofi users\u2019 withdrawal requests against all staked deposits, including interest.<\/p>\n<\/blockquote>\n

Gofi\u2019s products are provided by its partner, Genesis Global Capital, a subsidiary of Digital Currency Group (DCG), Gopax previously explained. Genesis halted<\/a> redemptions and new loan originations at its lending arm General Global Trading in November following the collapse of crypto exchange FTX.<\/p>\n

The crypto lender then filed for bankruptcy<\/a> in January following a lawsuit<\/a> by the U.S. Securities and Exchange Commission (SEC) alleging that the company offered and sold unregistered securities to retail investors. Gopax\u2019s parent company Streami Inc. is listed as one of Genesis Global\u2019s 10 largest known creditors in the bankruptcy filing.<\/p>\n

According to Binance\u2019s chief business officer, Yibo Ling, the company has taken a \u201cmeaningful\u201d equity stake in Gopax but the terms of the deal have not been disclosed.<\/p>\n

Binance Aims to Help Rebuild the Korean Crypto and Blockchain Industry<\/h2>\n

Binance\u2019s stake in Gopax is part of its Industry Recovery Initiative<\/a> (IRI), launched in November last year following the collapse of crypto exchange FTX and the bankruptcy filings of several crypto firms.<\/p>\n

Noting that the initiative was created \u201cto support promising companies that were negatively impacted by the events of last year,\u201d Binance CEO Changpeng Zhao (CZ) emphasized:<\/p>\n

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We hope that taking this step with Gopax will further rebuild the Korean crypto and blockchain industry.<\/p>\n<\/blockquote>\n

The two crypto exchanges will also work closely \u201cto improve user education and blockchain awareness through Binance Academy,\u201d Friday\u2019s announcement adds, concluding that Binance is committed to collaborating with local regulators and stakeholders to explore how it can \u201cleverage its technology and liquidity to support the local ecosystem.\u201d<\/p>\n

The South Korean government announced this week that it will adopt a cryptocurrency tracking system<\/a> within the first half of this year. In addition, the country\u2019s Financial Supervisory Service (FSS) has revealed its plan to develop monitoring tools<\/a> to regularly inspect the risks associated with crypto assets.<\/p>\n

What do you think about Binance reentering the Korean crypto market? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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