Binance to Reduce Stake in South Korean Crypto Exchange Gopax
Binance plans to reduce its stake in Streami, Gopax’s parent company, to 10% amidst regulatory concerns and impending deadlines. Megazone is the potential buyer.
Quick Read Points:
- Binance plans to reduce its stake in Streami, Gopax’s parent company, from 72.6% to 10%.
- The decision is driven by South Korean regulators’ concerns over corporate governance.
- The sale needs to be completed before the August 11 deadline for reporting changes related to real-name account renewals.
- The Financial Services Commission (FSC) requires Binance to reduce its shareholding to below 10% to consider approving the change.
- Megazone is in talks to acquire Binance’s stake, but any deal will require government approval.
Binance to Reduce Stake in South Korean Crypto Exchange Gopax
Bollywood Fever: Binance is reportedly in the process of significantly reducing its stake in Streami, the parent company of South Korean cryptocurrency exchange Gopax. The crypto giant is looking to cut its holding from 72.6% to approximately 10%, just over a year after acquiring the controlling interest. This move comes ahead of an August 11 deadline for reporting changes necessary for the renewal of real-name accounts.
According to IT Chosun, Binance’s decision is driven by South Korean regulators’ hesitance to approve the existing shareholding structure. An industry insider indicated that financial authorities have expressed concerns regarding the corporate governance structure, prompting Binance to consider selling its shares.
“Binance is pushing for the sale of shares to improve its governance structure as requested by financial authorities, to process a change report ahead of the renewal of its real-name account contract with Jeonbuk Bank in August,” the anonymous insider explained.
The urgency for Binance to offload its stake is tied to the requirements set by South Korea’s revised Special Financial Transactions Act, which mandates that crypto exchanges report any changes related to renewing real-name accounts at least one month before the contract signing. Despite acquiring the controlling stake in Gopax’s parent firm 15 months ago, Binance has faced challenges in getting the Financial Services Commission (FSC) to approve the shareholding change. The FSC is reportedly willing to consider the change only if Binance reduces its shareholding to below 10%.
The delay in approval has raised concerns that Binance may not complete the necessary contract renewal by the August 11 deadline. Failure to do so could complicate Binance’s operations within the South Korean market.
Amidst these developments, Megazone, a potential buyer for Binance’s stake in Streami, has stated that the two parties are exploring various forms of collaboration, including equity acquisition. However, any deal will be subject to government approval, underscoring the regulatory complexities involved.
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