TLDR
- Binance’s acquisition of Gopax moves forward as South Korea’s FIU resumes its review after a two-year delay.
- Binance took a 67% stake in Gopax in 2023 after the platform froze $47M in customer funds due to Genesis bankruptcy.
- The FIU’s review of Binance’s Gopax deal could lead to approval by the end of 2025, signaling a return to South Korea.
- Gopax remains a key player in South Korea’s crypto market, with Binance’s backing crucial to its financial recovery.
Binance is on the verge of returning to the South Korean market as the country’s Financial Intelligence Unit (FIU) resumes its review of the exchange’s acquisition of local platform Gopax. This review, which had been delayed for over two years, is expected to conclude by the end of 2025, potentially allowing Binance to re-enter South Korea after its exit in 2021. The review centers around Binance’s role as a major shareholder in Gopax, a key exchange in South Korea’s cryptocurrency market.
Binance’s Acquisition of Gopax and Its Challenges
Binance first acquired a 67% stake in Gopax in February 2023, following a financial crisis at Gopax. The platform had frozen $47 million of customer funds after its DeFi partner, Genesis Global Capital, went bankrupt. Binance stepped in to help stabilize Gopax by taking majority control, to inject capital to resolve the customer funds issue.
However, the acquisition faced delays as South Korean regulators expressed concerns about Binance’s legal challenges, including ongoing lawsuits with the U.S. Securities and Exchange Commission (SEC) and accusations from the U.S. Department of Justice regarding money laundering. These issues led to a pause in the approval process, but the FIU’s renewed review suggests that regulatory attitudes may now be shifting in Binance’s favor.
South Korean FIU Resumes Review of Gopax Acquisition
The FIU’s decision to resume its review of the Binance-Gopax deal signals a potential change in the regulatory landscape for the exchange in South Korea. Local authorities had previously stalled the approval, citing concerns about Binance’s past legal issues in the U.S.
However, reports indicate that the FIU is now reviewing Binance’s executive change report positively, indicating a growing confidence in the exchange’s compliance efforts. If this trend continues, the approval of the acquisition could occur by the end of 2025.
Binance’s ongoing efforts to address regulatory concerns, including those raised by U.S. authorities, appear to be paying off. The FIU’s favorable review could be a sign that South Korean regulators are now more comfortable with Binance’s operations and its role in Gopax.
The Future of Gopax and Binance’s Role in South Korea
Gopax remains one of South Korea’s five authorized crypto exchanges and holds an important position in the country’s cryptocurrency market. Despite its challenges, particularly during the Genesis Global Capital crisis, Gopax has continued to operate. Binance financial backing has been a crucial factor in the platform’s ability to remain operational.
Although Binance originally planned to reduce its stake in Gopax by selling shares to a local cloud provider, that deal fell through by late 2024. As of now, Binance remains the largest shareholder in Gopax, and the outcome of the FIU review will determine the future of both companies in the South Korean market.
