South Korea has resumed its review of Binance’s acquisition of local crypto exchange Gopax, potentially paving the way for the world’s largest crypto exchange to fully re-enter the country.
The Financial Intelligence Unit (FIU) is now examining Gopax’s formal report on changes to key executives, a process that effectively assesses Binance’s qualifications as a controlling shareholder. Regulatory approval could come as early as the end of 2025, marking a major step forward after a two-year pause.
Executive Review Key to Binance’s Regulatory Approval
Under South Korean law, there is no separate system for evaluating major shareholders in crypto exchanges. Consequently, the FIU uses the review of executive changes at Gopax as a proxy to assess Binance’s ownership.
According to CryptoQuant, Binance first acquired a 67% stake in Gopax in February 2023, becoming the exchange’s largest shareholder. However, approval was temporarily frozen amid anti-money laundering (AML) concerns and Binance’s ongoing legal issues in the U.S. with the SEC and DOJ.
A $4.3 billion settlement Binance later reached with U.S. authorities appears to have eased concerns among South Korean regulators, allowing the review to progress.
“Binance’s commitment to regulatory compliance and corporate governance is a key factor in the FIU’s renewed assessment,” industry sources said.
Gopax’s Challenges and Binance’s Role in Stabilizing the Exchange
Gopax is among the few exchanges in South Korea authorized to handle cash-to-crypto transactions, requiring strict Know Your Customer (KYC) and AML compliance. The platform faced a major liquidity crisis in early 2023 when its DeFi partner, Genesis Global Capital, froze withdrawals linked to Gopax’s GoFi product, leaving approximately $47 million (₩56.6 billion) inaccessible to users.
Binance’s acquisition was initially framed as a rescue, intended to restore customer confidence and inject funds to compensate affected users. Regulatory delays forced Binance to explore selling part of its stake to local cloud provider Megazone, though the plan fell through in late 2024.
Broader Regulatory Context in South Korea
South Korea has tightened crypto regulations in recent months. In August, regulators ordered exchanges to suspend all crypto lending services until a proper legal framework is established. At the same time, authorities are preparing to approve the country’s first spot crypto ETFs and are drafting a framework for stablecoins pegged to the Korean won.
Local exchanges are adapting to these regulatory changes. Dunamu, the operator of Upbit, recently launched a custody service for institutional clients, storing assets entirely offline in cold wallets to protect against cyber threats.
“As regulated crypto markets expand, secure storage solutions are increasingly vital for investor protection,” said a Dunamu spokesperson.
Looking Ahead
The FIU’s review of Binance’s Gopax acquisition could be a turning point for the South Korean crypto market. Successful approval would not only allow Binance to re-establish a major presence in the country but also signal growing regulatory confidence in global crypto firms adhering to strict AML and KYC standards.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Not directly yet. Binance is seeking regulatory approval to finalize its acquisition of Gopax, a licensed local exchange, which would allow it to re-enter the market.
South Korean regulators paused the review due to Binance’s ongoing legal issues with U.S. authorities. The process resumed after Binance’s $4.3 billion settlement.
Binance’s investment is intended to resolve Gopax’s liquidity crisis, potentially allowing it to reimburse users affected by the frozen GoFi product.
Industry sources suggest regulatory approval for Binance’s control of Gopax could come as early as the end of 2025, but this is not guaranteed.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
