A recent financial report from Streami, the parent company of Gopax, revealed that the South Korean cryptocurrency exchange experienced significant revenue growth and a notable reduction in net losses in 2023.
Gopax’s Revenue Surge And Net Loss Reduction
Despite challenges related to liquidity issues and regulatory scrutiny, Gopax narrowed its net loss to 51.3 billion Korean won ($37 million) last year, compared to 90.6 billion won in the previous year.
The financial report further showcased Gopax’s notable performance in 2023, with a roughly 97% year-over-year growth in revenue, reaching 3.1 billion won. Additionally, the exchange reduced its net operating loss by 78% to approximately 17 billion won.
As reported, 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” crypto markets globally in 2023.
Despite its revenue growth, Gopax encountered notable hurdles, particularly regarding its association with Genesis Global Capital, which had a subsequent halt of withdrawals stemming from a liquidity crisis associated with its involvement in FTX in 2022.
The situation resulted in substantial losses for Gopax, with funds from its GoFi-linked debt stuck in Genesis Global Capital, totaling 63.7 billion won. However, Binance, Gopax’s major shareholder, stepped in to address liquidity issues and “acquired” the exchange in February 2023, aiming to penetrate the South Korean market.
According to the report, Binance’s acquisition positioned the global exchange as the largest shareholder in Gopax, holding a 67.45% stake.
Binance’s Global Challenges And Resilience
However, Binance itself has been navigating regulatory challenges from several corners globally. Among these challenges is the $4.3 billion fine settlement with the US Department of Justice and even the crackdown from the Nigerian government.
Additionally, the crypto exchange has recently faced a ban from the Philippines Securities and Exchange Commission (SEC). As reported, the SEC’s decision was based on Binance’s failure to obtain the necessary license from the commission to operate as an investment and trading platform in the region.
SEC Chairman Emilio Aquino noted:
The SEC has identified the aforementioned (Binance) platform and concluded that the public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos.
In response to these regulatory hurdles globally, Binance’s CEO, Richard Teng, recently outlined a new strategy focused on addressing “cultural issues” and “enhancing compliance efforts.”
Notably, despite all of these challenges Binance has faced recently, the exchange’s native token, BNB, has maintained its trading value above $600, boasting green days up by 6.6% in the past 7 days and 2.2% in the past 24 hours with a current market price of $612.
Featured image from Unsplash, Chart from TradingView