Binance discusses selling Gopax stake to Korean cloud provider Megazone: report

As a crypto investor with experience in the South Korean market, I have closely followed the developments surrounding Binance and its stake in Gopax. The news that Binance is seeking to sell its majority stake in Gopax to Megazone comes as no surprise, given the regulatory pressure on cryptocurrency exchanges in the region.

According to reports, Binance is close to finalizing a agreement to transfer the bulk of its ownership in cryptocurrency exchange Gopax to South Korean cloud service provider Megazone.

As a researcher, I’ve come across some intriguing information regarding Binance’s advanced negotiations to transfer its controlling share in Gopax, a significant cryptocurrency exchange based in South Korea, to Megazone – a prominent South Korean provider of cloud infrastructure solutions. The news was broken by local media outlets who claimed to have obtained this intelligence from reliable sources familiar with the situation.

As a crypto investor, I’ve been keeping a close eye on Binance’s moves in the market. Last February, Binance acquired a significant stake of 72.26% in Gopax. However, now, Binance is looking to reduce its ownership in Streami, which operates Gopax, from around 72.6% down to roughly 10%. The reason behind this decision, according to my sources, is to enhance Binance’s corporate governance structure as required by financial regulators.

As an analyst, I’ve reviewed the reports and found that Binance and Megazzone are planning to complete their transaction by the end of July. However, it’s important to note that Megazzone’s spokesperson mentioned in their interview with the Chosun Daily that the “stake acquisition” is still pending “government approvals.”

Megazone wasn’t the first bidder for Gopax as BF Labs (formerly known as City Labs), a South Korean public company, earlier also emerged as a potential acquirer for Binance’s stake in Gopax. BF Labs secured an 8.55% stake in Streami through a capital increase and stock purchase in September last year, making it the second-largest shareholder and appointing its CEO as Gopax’s chief executive. However, the company’s plans to further increase its stake were abandoned due to financial constraints.

In late 2022, Binance took over a dominant share of Gopax, signifying Binance’s return to the South Korean market from which it had withdrawn in 2021. The specifics regarding the percentage of shares acquired by Binance have yet to be revealed.

Reports emerged that Streami Inc., the mother company of Gopax, ranked among the top creditors for the insolvent crypto lender, Genesis Global. Meanwhile, Digital Currency Group, which is the parent organization of a US-based crypto lending firm, held the position as the second-largest shareholder in Gopax. After these revelations surfaced, Binance became involved.

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2024-07-11 13:06