South Korean Crypto Exchange GOPAX May Lose Right to Trade Fiat
The South Korean crypto exchange GOPAX could lose its right to offer fiat-coin parings, a report claimed on August 7.
Per the newspaper Chungnyun Ilbo, GOPAX’s banking partner Jeonbuk Bank is “reviewing” the parties’ “contract renewal.”
GOPAX, the outlet noted, has “been in a state of capital erosion for several years.”
The exchange has fallen into further financial trouble following a failed takeover attempt from Binance.
Binance snapped up a majority 72% stake in GOPAX in February 2023. At the time, the deal promised to reshape the South Korean crypto landscape.
But following regulatory intervention, Binance was forced to step back from its attempts to gain a foothold in the South Korean market.
Last month, reports claimed Binance was negotiating with the South Korean cloud service provider Megazone over the sale of most of its GOPAX holdings.
But this sale is still yet to materialize, with regulators reportedly unconvinced about its viability. And this fact appears to be worrying Jeonbuk Bank.
The bank has a “real-name” account partnership with GOPAX. Under South Korean law, only exchanges with these partnerships can apply to trade fiat.
Without the banking partnership, GOPAX may have to restrict its offerings to crypto-to-crypto trading only.
Jeonbuk Bank’s entry into the crypto sector in February 2022 was seen as a watershed moment for the South Korean crypto sector.
The sector is currently dominated by the so-called “big four” exchanges – Upbit, Bithumb, Coinone, and Korbit.
Upbit alone has cornered between 60 and 80% of the market, with Bithumb accounting for much of the remainder.
Before the Jeonbuk Bank deal, only the “big four” could offer fiat trading pairs. GOPAX’s potential exit from the industry would restore the
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