According to local media reports, Binance, the world’s largest cryptocurrency exchange, has completed the acquisition of a South Korea-based exchange, Gopax. The Financial Intelligence Unit (FIU) of South Korea approved Binance’s long-pending application for a change in management, a move Gopax initiated in February 2023 after Binance acquired a 67% stake. This approval allows Binance to resume its operations in South Korea, which it halted in 2021.
Approval Signals Binance’s Return
The FIU decision follows Binance’s resolution of compliance issues in the United States. Notably, the Securities and Exchange Commission (SEC) had accused Binance of operating without a license in the US in mid-2023. Additionally, the US Department of Justice imposed a $4.3 billion fine on the company for money laundering violations. The payment of these fines and the strengthening of auditing standards seem to have facilitated the final approval from South Korean authorities.
Binance plans to re-enter the South Korean market through Gopax, becoming one of the five exchanges in the country to operate with a license. This license is granted only to platforms that meet rigorous anti-money laundering and customer verification standards.
The Gopax Crisis and Binance’s Intervention
In 2023, Gopax faced a severe liquidity crisis following the bankruptcy of its DeFi partner, Genesis Global Capital (GGC). GGC’s freezing of customer funds, subsequent to the collapse of the FTX exchange, left approximately $47 million worth of user assets in Gopax’s GoFi deposit product inaccessible.
In response to this predicament, Binance announced in February 2023 that it would acquire a majority stake in Gopax, infusing capital and backing the repayment of affected investors. With FIU’s final approval, Binance is poised to move beyond the rescue operation, marking its official re-entry into the South Korean cryptocurrency market.
According to CoinMarketCap data, Binance remains the world’s largest cryptocurrency exchange, with a 24-hour transaction volume of $25.86 billion and 11.55 million monthly visitors.
