Binance Takes a Groundbreaking Move to Sell Its Stake
The post Binance Takes a Groundbreaking Move to Sell Its Stake appeared first on Coinpedia Fintech News
According to the release on Tuesday, Binance is planning to reduce its stake as it takes a step ahead to disinvest in Gopax, a South Korean-based company. This decision of the leading crypto firm has raised many questions about the crypto industry. In February 2023, Binance bought the majority stake from Gopax; however, it witnessed intense backlashes from South Korea’s Financial Services Commission (FSC) and the U.S. SEC.
Binance to sell back to Gopax
Binance one of the largest crypto exchange platforms, makes a significant decision to sell back its stake to the host company Gopax. Now this decision will certainly address the issues that came into concern with reporting requirements with Virtual Asset Business Operations [VASPs], according to the same report.
According to Steve Young Kim, Asia-Pacific director at Binance, “Gopax’s large debt is expected to be partially resolved through equity-to-equity conversion.” He said, “We expect that we will be able to provide more specific data on the sale of the shares in some form within a month or two.”
Binance to convert debt into equity
Binance will disclose more information on reducing its stake with Gopax in two months, as it has committed to its prospects. The crypto platform is planning to transform the debt paid as GoFi repayment into equity which will therefore sell a portion of the stake to find a reasonable solution to the issue.
Binance ventures to expand
After the exit in January 2021, Binance was enthusiastically waiting to re-enter South Korea as South Korea is one of the leading hubs of crypto exchange platforms in terms of economic scalability. Besides that, it has an extensive talent and startup community. Altogether these are the primary reasons for Binance’s venture into South Korea.
Inefficiency continues
Binance was certainly on the verge of closing the acquisition deal, however, the SEC lawsuit only created hardships. Binance’s past exits did work eventually but the current SEC lawsuit against Binance is continuing in the market with inefficiency.
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