Binance to Repay GoFi Users and Expand Operations in South Korea
Binance, the global cryptocurrency giant, is doubling down on its efforts to establish a foothold in South Korea, one of Asia’s most promising crypto markets. With plans to fully repay GoFi users by 2026, the company is setting the stage to challenge local titans like Upbit and Bithumb.
Addressing the GoFi Restitution Issue
Binance’s journey into the South Korean market hasn’t been without hurdles. After acquiring Gopax, a local exchange affected by the collapse of Genesis Global Capital, Binance inherited a significant challenge. Gopax’s DeFi product, GoFi, froze user withdrawals in early 2023, leaving thousands of users unable to access their crypto assets. This issue arose following Genesis’s suspension of redemptions and eventual bankruptcy filing.
Binance APAC head SB Seker emphasized that resolving the GoFi restitution issue remains the company’s priority. The funds—comprising over 775 BTC, almost 5,800 ETH, and more than 700,000 USDC, worth significantly more now due to market appreciation—are secured in a third-party wallet and await clearance from South Korean authorities.
Expansion Plans: Ready for the Future
Once the GoFi repayment process concludes, Binance plans to enhance Gopax’s infrastructure with cutting-edge technology and compliance improvements. While rebranding Gopax under the Binance name remains an option, the immediate focus is on offering regulated and in-demand products tailored to the South Korean market.
Looking ahead, Binance sees growth potential in stablecoins, tokenized real-world assets (RWAs), and institutional crypto services. The company is considering the development of a Won-backed stablecoin to meet local payment needs. Additionally, tokenized securities and other RWAs could be introduced via partnerships with South Korean entities as regulations become clearer.
Navigating Challenges in South Korea’s Regulatory Landscape
South Korea presents unique opportunities and challenges for Binance. Proposed regulations may limit ownership stakes in exchanges, potentially affecting Binance’s 67% stake in Gopax. However, Seker remains optimistic, describing South Korea as one of the most balanced crypto ecosystems in the Asia-Pacific region.
Despite the dominance of local players like Upbit and Bithumb, Binance is positioning itself for aggressive competition. By building trust through addressing past user grievances and prioritizing compliance, the company aims to climb to the top of the South Korean crypto market.
Invest in Your Crypto Education
While Binance’s plans unfold, staying informed about cryptocurrency strategies is critical for investors. For those looking to dive deeper into crypto education, resources such as Binance Academy provide valuable insights into DeFi, blockchain, and market trends.
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