Through a stake in the GOPAX Exchange, Binance re-enters the South Korean cryptocurrency market.

The biggest cryptocurrency exchange in the world, Binance, is accustomed to frequently making news for its latest acquisitions. The news of today is no exception, as Binance is preparing to re-enter the South Korean cryptocurrency market as a result of its ownership of the troubled GOPAX exchange. Due to annoying challenges including poor usage and volume from South Korean users, Binance discontinued its operations in South Korea in 2021. But Binance has just made a comeback in the East Asian nation thanks to its stake in GOPAX.

Will Binance Help GOPAX？

After insolvent cryptocurrency lending company Genesis declined to pay GOFI users last November, the GOPAX exchange had significant money troubles. A yield-generating product called GOFI is provided by GOPAX in conjunction with a partnership with Genesis. Principal and interest payments for the Defi service, GOFI, could ultimately no longer be withdrawn by the cryptocurrency exchange located in South Korea.

According to reports, the suspension came about as a result of the partner, Genesis Global Capital, stopping purchases and starting new loans at its lending arm, Genesis Global Trading. Just one week after the FTX catastrophe, Genesis announced the termination of the GOFI withdrawals, claiming unusual withdrawal demands. One of the top ten known debtors of the defunct cryptocurrency lender Genesis Global is GOPAX's parent business, Streami Inc. Genesis' parent firm, Digital Currency Group, is the second-largest shareholder of GOPAX, according to a blog post by GOPAX.

Binance made the decision to buy the South Korean exchange even though it is still seriously in crisis. Binance's chief business officer, Yibo Ling, disclosed that the company had acquired a sizeable equity stake in GOPAX. Furthermore, after the collapse of FTX late last year, Binance created the Industry Recovery Initiative, and from there it bought a stake in GOPAX.

In order to enable consumers to collect their interest payments in GOPAX's yield product GoFi, the company wants to inject cash into GOPAX. The main goal of this agreement, according to Ling, was to support clients and ensure that anyone who wanted to withdraw their funds could do so.

Rewind To Binance's Demise In South Korea

Binance stopped operating in South Korea in November 2021. Binance's South Korean Won (KRW) trading pairs service, KRW payment alternatives, P2P merchant software, and Korean language website compatibility were among the businesses that were halted.

According to Bitcoinist, the company's choice may have something to do with the notification from the South Korean Financial Intelligence Unit. In a speech, Changpeng “CZ” Zhao, the CEO of Binance, expressed his optimism that the company's decision to use GOPaX to return to South Korea will help to “further strengthen the Korean crypto and blockchain industry.”

Binance's native token, BNB, has shown immense opportunities, even as it continues to buy more cryptocurrency and boost its investment there. BNB is starting to recover after weathering the industry's pervasive FUD (fear, uncertainty, doubt) in the latter part of last year.BNB has increased almost 30% since the start of the year, crossing the $300 threshold. Despite the cryptocurrency's recent big movement, it is still below 52% from its all-time high of $686, which was reached in May 2021.

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