A recent financial report report from Streami, the parent company of Gopax, revealed that the South Korean cryptocurrency exchange saw significant revenue growth and a notable reduction in net losses in 2023.
Increase in Gopax revenues and reduction in net losses
Despite challenges related to liquidity issues and regulatory scrutiny, Gopax narrowed its net loss to 51.3 billion Korean won ($37 million) last year from 90.6 billion won the year before.
The financial report further showcased Gopax’s remarkable performance in 2023, with revenue growth of around 97% year-on-year, reaching 3.1 billion won. Additionally, the exchange narrowed its net operating loss by 78% to around 17 billion won.
As noted, these positive results were largely attributed to the resurgence of bullish sentiment in the South Korean crypto market, which has become one of the The “most active” crypto markets in the world in 2023.
Despite its revenue growth, Gopax has faced notable hurdles, including its association with Genesis Global Capital, which subsequently experienced a halt in withdrawals due to a liquidity crisis associated with its involvement in FTX in 2022 .
The situation resulted in substantial losses for Gopax, with funds from its GoFi-related debt tied up in Genesis Global Capital, totaling 63.7 billion won. However, Binance, Gopax’s main shareholder intervened to resolve liquidity problems and “acquired” the exchange in February 2023, with the aim of entering the South Korean market.
According to the report, the acquisition of Binance positioned the global exchange as the largest shareholder of Gopax, holding a 67.45% stake.
Binance’s Global Challenges and Resilience
However, Binance itself has faced regulatory challenges in several regions around the world. Among these challenges is the $4.3 billion fine settlement with the US Department of Justice and even the Nigerian government crackdown.
Additionally, the crypto exchange recently faced a ban from the Philippine Securities and Exchange Commission (SEC). As reportedThe SEC’s decision was based on Binance’s inability to obtain the necessary license from the commission to operate as an investment and trading platform in the region.
SEC Chairman Emilio Aquino said:
The SEC identified the aforementioned platform (Binance) and concluded that continued public access to these websites/apps poses a threat to the security of the funds of Filipino investors.
In response to these global regulatory hurdles, Binance CEO Richard Teng recently presented a new strategy focused on solving “cultural issues” and “strengthening compliance efforts”.
Notably, despite all these challenges that Binance has faced recently, the exchange’s native token, BNB, has maintained its trading value above $600, posting green days up 6.6% over the last 7 days and 2.2% in the last 24 hours with a current exchange rate. market price of $612.
Featured image from Unsplash, chart from TradingView
