In 2023, the financial results of Streami, which oversees Gopax, showed a substantial increase in earnings for the South Korean crypto exchange, along with a sizeable decrease in its net losses.
Gopax’s Revenue Surge And Net Loss Reduction
In spite of facing hurdles due to financial difficulties and intense examination from regulators, Gopax managed to reduce its annual loss to 51.3 billion Korean won ($37 million) during the previous year, which is a significant improvement from the 90.6 billion won ($62 million) loss recorded in the prior year.
In the financial report for 2023, Gopax’s impressive progress was highlighted. This included a nearly 97% increase in revenue compared to the previous year, amounting to around 3.1 billion won. Furthermore, the exchange managed to decrease its net operating loss by approximately 78%, bringing it down to about 17 billion won.
In late 2023, the South Korean crypto market experienced a significant surge in optimistic outlooks among investors, leading to impressive gains. This bullish sentiment made the South Korean market one of the world’s most vibrant crypto markets.
Although Gopax experienced an increase in revenue, it faced significant challenges, primarily due to its connection to Genesis Global Capital. In late 2022, Genesis encountered a withdrawal halt because of a liquidity crisis linked to its dealings with FTX.
Gopax experienced significant financial setbacks due to the situation at hand, with approximately $54 million (63.7 billion won) of its GoFi-linked debt funds being unable to be withdrawn from Genesis Global Capital. To alleviate liquidity concerns, Binance – Gopax’s primary investor – intervened and took over the exchange in February 2023. Their objective was to expand their presence in the South Korean market.
The report states that Binance now owns a 67.45% share of South Korean exchange Gopax following their acquisition.
Binance’s Global Challenges And Resilience
Despite facing regulatory hurdles on various fronts around the world, Binance has been working to overcome them. For instance, the company reached a $4.3 billion settlement with the US Department of Justice, and also encountered restrictions from the Nigerian authorities.
An extra development is that the cryptocurrency exchange Binance has been prohibited by the Philippines Securities and Exchange Commission (SEC) from carrying out operations as a investment and trading platform due to their lack of obtaining the required license from the commission.
SEC Chairman Emilio Aquino noted:
The SEC has determined that using the Binance platform identified earlier poses a risk to the safety of Filipino investors’ funds, and it is recommended that the public avoid accessing it.
In reaction to the regulatory challenges faced around the world, Binance’s CEO, Richard Teng, has proposed a fresh approach. This new method aims to tackle “attitudinal differences” and strengthen “regulatory adherence.”
Despite facing numerous obstacles in recent times, Binance’s native token BNB has managed to keep its value above $600. In fact, over the last week, BNB has experienced a 6.6% increase and a 2.2% rise within the past 24 hours. Currently, the token is priced at $612 on the market.
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2024-04-13 00:11