Binance in Final Stage of Negotiations for Sale of Majority Stake in Gopax Exchange

cryptonews.com:

Binance is reportedly close to finalizing negotiations with South Korean cloud service provider Megazone for the sale of a majority stake in Gopax, a local exchange.

According to a report from South Korean news outlet The Chosun Ilbo, Binance is preparing to reduce its current 72.6% stake in Gopax to as low as 10%.

Sources familiar with the matter, who preferred to remain anonymous, told the outlet that Binance is pursuing the sale of Gopax shares in order to enhance its governance structure, as requested by local financial authorities.

The move comes as the world’s largest crypto exchange seeks to comply with regulatory requirements and ensure a smooth renewal of Gopax’s real-name account contract with Jeonbuk Bank, which is set to expire on August 11, 2024.

Binance initially acquired its majority stake in Gopax in February 2023, with the intention of reestablishing its presence in the South Korean market.

However, the South Korean financial authorities blocked Binance’s capital injection by denying the change in the largest shareholder at the time.

This setback prompted Binance to explore options to adjust its ownership in Gopax.