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Crypto chaos is finally wreaking havoc on South Korean exchanges – with the crypto investment bank Genesis’ decision to suspend buyouts and new loan offerings earlier this week disrupt services on the Gopax Exchange platform.

The country’s platforms have – until very recently – seemed waterproof to the ripple effects of the collapse of FTXpartly because they do not issue their own coins.

By YTN, Gopax said it has delayed interest and principal payments to customers who use its GOFi staking services. The product was developed in collaboration with Genesis Global Capital.

Gopax explained that its GOFi products “are provided by our business partner Genesis Global Capital”.

Gopax transaction volumes over 3 months. (Source: CoinGecko)

The company said it had asked Genesis to refund all crypto-assets of GOFi customers “before” the US company’s announcement on Wednesday. And Gopax also said it would speed up repayments by staying “in constant communication” with Genesis and its operator, the Digital Currency Group.

The matter is somewhat complicated by the fact that the DCG owns a 14% stake in Gopax. The South Korean stock exchange was quoted as explaining:

“DCG is Gopax’s second largest shareholder. It is one of our main trading partners. We will do everything possible to ensure that customers can receive full refunds.

Gopax: Attracting interest from Binance?

Earlier this week, the media off-center reported that Binance officials had “recently” held talks with a senior Gopax official. The outlet claimed that Gopax has “emerged as a strong acquisition target” for the crypto exchange giant.

The top 5 coins traded on Gopax on 11/17/2022. (Source: CoinMarketCap)

Binance is an extremely popular exchange among South Korean crypto traders. But breaking into the “official” South Korean crypto exchange market has proven problematic for international players. So far, only five exchanges – all South Korean startups – have obtained crypto-fiat trading licenses.

While Binance has recently entered into a partnership agreement with the city of Busan to help it build a so-called digital asset exchange, many believe the crypto exchange hopes to become the first international player to enter the South Korean crypto-KRW market.

South Korean startup Streami owns about 41% of Gopax shares. The rest belongs to the aforementioned DGC and the two co-founders of the trading platform.

Streami CEO Lee Jun-haeng reportedly said it was “true” that the company had “met Binance a few times”, but stressed that “nothing has been officially decided”.

A Binance official, however, claimed that the exchange giant “would not comment on speculation or rumours.”

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