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Binance is in advanced talks to substantially reduce its stake in Streami, the parent company of South Korea’s Gopax exchange.
According to reports from IT Chosun, Binance currently owns 72.6% stake in Streami but plans to cut this ownership to just 10% through a prospective deal with Megazone, a firm specializing in infrastructure software solutions.
This move by Binance reflects a strategic effort to comply with regulatory demands and enhance governance, particularly in response to requirements from financial authorities in South Korea.
These changes are crucial as Binance seeks to renew its real-name account contract with Jeonbuk Bank, scheduled for August. In South Korea, obtaining real-name accounts from a local bank is essential for cryptocurrency exchanges to legally offer fiat-to-crypto trading services.
Sources familiar with the ongoing discussions indicate that Binance and Megazone may finalize a concrete agreement as early as this month. An official from Megazone also confirmed the ongoing discussion, noting that the exact timeline and framework of the stake sale are still under consideration, pending regulatory clearance.
Binance acquired a significant stake in Streami last year to strengthen its foothold in the South Korean market, focusing notably on Gopax, one of the leading cryptocurrency exchanges in the region. However, heightened regulatory scrutiny and calls for governance improvements have compelled Binance to reassess its ownership in Streami.
The Financial Services Commission in South Korea has reportedly urged Binance to lower its stake in Streami below 10% and adjust its shareholder structure to comply with local regulations. These regulatory hurdles have posed a challenge for Binance, necessitating strategic adjustments to its ownership and operational governance.
Earlier attempts by Binance to resolve governance issues through stake adjustments, including a potential increase by domestic firm BF Labs, were hampered by financial and regulatory challenges. The current discussions with Megazone represent a critical juncture for Binance and Gopax, particularly as the deadline for the real-name account contract renewal looms next month.
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