Gopax, a leading South Korean cryptocurrency exchange, has successfully extended its real-name deposit and withdrawal account (real-name account) contract with Jeonbuk Bank for nine months. This extension comes at a critical time as Gopax, which has been in a state of capital impairment, was facing the risk of halting its KRW (Korean Won) trading. The contract extension allows Gopax to prepare for the upcoming Virtual Asset Service Provider (VASP) renewal report scheduled for later this year.
On August 12th, Gopax finalized the renewal of its real-name account contract with Jeonbuk Bank, securing a nine-month extension. The renewal was granted on a conditional basis, despite Jeonbuk Bank’s initial requirement that Gopax reorganize its ownership structure before extending the contract. While Gopax’s majority shareholder, Binance, has not yet completed the sale of its stake to Megazone, Jeonbuk Bank proceeded with the extension.
Previously, Gopax and Jeonbuk Bank first entered into a contract in early 2022, with a subsequent two-year extension. However, due to the ongoing reorganization of Gopax’s ownership structure, the latest extension was limited to nine months. This extension now enables Gopax to prepare the necessary documentation for the VASP renewal report, which must be submitted by September 13th, ahead of the October 24th deadline.
Binance, which holds a 67.45% stake in Gopax, plans to sell over 58% of its shares to Megazone, reducing its ownership to less than 10%. However, the stake reorganization has been delayed as Megazone has yet to complete the payment. Industry insiders stress the importance of Megazone finalizing the payment and completing the stake transfer to help Gopax emerge from its current capital impairment situation.
Recently, Megazone demonstrated its commitment to acquiring Gopax’s shares by submitting a Letter of Commitment (LOC). If Megazone successfully acquires Binance’s shares and injects capital into Gopax through a rights offering, Gopax could potentially pay off a significant portion of its debt and restore its financial stability.
A Gopax spokesperson confirmed, “The real-name account contract with Jeonbuk Bank has been renewed, but we cannot comment further on the renewal report and investment plans.” This contract extension marks a crucial step for Gopax as it navigates the challenges ahead.
