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**Binance’s Plan to Reduce Stake in Gopax to Resolve Liquidity Issues**

Binance, a major player in the cryptocurrency exchange industry, is currently in early-stage discussions to decrease its stake in South Korean crypto exchange Gopax. The goal of this move is to address Gopax’s liquidity issues, which have arisen in the aftermath of the collapse of FTX and ongoing local compliance concerns. This information has been reported by the South Korean news outlet Dailian.

The acquisition of Gopax by Binance took place in February 2023, following Gopax’s struggles with liquidity related to the collapse of Genesis Global Capital, which was a result of its affiliation with FTX. In order to rescue Gopax from its liquidity challenges, Binance acquired a significant 72.26% stake in the South Korean exchange.

According to Steve Kim, Binance’s Asia-Pacific BD director, the plan involves converting the loans that Binance has extended to Gopax into equity. Subsequently, Binance intends to sell these shares to other companies, with the aim of alleviating the debt burden within Gopax. This strategic move would result in Binance relinquishing its position as the largest shareholder in Gopax, instead becoming the second-largest shareholder, as reported by Dailian.

In December, Gopax made an announcement stating that it was in the final stages of securing funds to recover the deposits it lost in the Genesis Global Capital collapse. Furthermore, the revised plan is anticipated to support Gopax in renewing its registration with the local regulator, the Financial Services Commission.

Despite the efforts made by Gopax to address its liquidity and compliance issues, the process has faced obstacles. Following Binance’s acquisition of Gopax, the exchange applied to report its structural changes for virtual asset service provider registration with the FSC. However, the FSC has delayed its approval of this change for over a year, citing concerns related to Binance’s legal issues in the United States.

In light of these developments, Binance’s plan to reduce its stake in Gopax is a critical step towards resolving the exchange’s liquidity and compliance challenges. However, the complexities and legal implications of such a strategic move require careful navigation and understanding of the legal landscape surrounding cryptocurrency transactions and acquisitions.

This is where AI legalese decoder can play a crucial role, providing comprehensive analysis and interpretation of the legal implications of Binance’s plan to reduce its stake in Gopax. By leveraging advanced AI technology, the legalese decoder can offer insights into the regulatory considerations, compliance requirements, and potential legal ramifications associated with this move. With its ability to process and interpret complex legal language and regulations, the AI legalese decoder can provide invaluable support in assessing the legal viability and implications of Binance’s strategic decision, ultimately aiding in navigating the intricate legal landscape of cryptocurrency transactions.

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