Binance-backed Gopax Exchange Reports Revenue Surge and Net Loss Reduction amid Regulatory Challenges

The Binance-backed Gopax Exchange has made significant strides in 2023, according to a recent financial report from Streami, its parent company. Despite facing challenges such as liquidity issues and regulatory scrutiny, Gopax managed to narrow its net loss to 51.3 billion Korean won ($37 million) last year, a notable improvement from the previous year’s 90.6 billion won loss.

The report also highlighted Gopax’s impressive revenue growth, with a 97% year-over-year increase to 3.1 billion won. The exchange also reduced its net operating loss by 78% to around 17 billion won. These positive results were largely attributed to the resurgence of bullish sentiment in the South Korean crypto market, which emerged as one of the most active markets globally in 2023.

However, Gopax faced challenges related to its association with Genesis Global Capital, which led to a liquidity crisis and substantial losses for the exchange. Binance, Gopax’s major shareholder, stepped in to address the liquidity issues and acquired the exchange in February 2023, aiming to penetrate the South Korean market. Binance now holds a 67.45% stake in Gopax.

Despite Binance’s support, the global exchange has been facing regulatory challenges in various countries, including a $4.3 billion fine settlement with the US Department of Justice and a ban from the Philippines Securities and Exchange Commission. In response to these challenges, Binance’s CEO, Richard Teng, outlined a new strategy focused on enhancing compliance efforts.

Despite these hurdles, Binance’s native token, BNB, has maintained its trading value above $600, with a current market price of $612. The token has seen positive growth in the past 7 days and 24 hours, indicating resilience in the face of regulatory challenges.