Binance is reportedly nearing a deal to sell its majority stake in crypto exchange Gopax to Korean cloud provider Megazone.

Cryptocurrency exchange Binance is in advanced talks to sell its controlling stake in Gopax, one of South Korea’s crypto exchanges, to Megazone, a South Korean infrastructure provider for cloud solutions, according to local news outlets, which cited sources close to the matter.

Binance, which acquired a 72.26% stake in Gopax in February last year, is now seeking to reduce its ownership in Streami, the operator of Gopax, from 72.6% to approximately 10%, a move that is aimed at “improving its corporate governance structure as mandated by financial regulators,” sources close to the matter say.

The reports indicate Binance and Megazone are set to finalize the transaction by the end of July. In a commentary to the Chosun Daily, a spokesperson for Megazone said that “stake acquisition” is yet “subject to government approvals.”

Megazone wasn’t the first bidder for Gopax as BF Labs (formerly known as City Labs), a South Korean public company, earlier also emerged as a potential acquirer for Binance’s stake in Gopax. BF Labs secured an 8.55% stake in Streami through a capital increase and stock purchase in September last year, making it the second-largest shareholder and appointing its CEO as Gopax’s chief executive. However, the company’s plans to further increase its stake were abandoned due to financial constraints.

Binance acquired a majority stake in Gopax as part of its re-entry into the Korean market, which it had left in 2021. The exact figures of the stake acquisition were not disclosed though.

Binance’s involvement came after reports surfaced that Gopax’s parent company, Streami Inc., was among the top ten creditors of the insolvent crypto lender Genesis Global. Meanwhile, Digital Currency Group, the parent company of the U.S. crypto lender, was the second-largest shareholder in Gopax.