Binance Edges Closer to South Korea Return as FIU Resumes GOPAX Review

Binance çould return to South Korea. | Credit: CCN.

Key Takeaways

Binance could re-enter South Korea as the FIU resumes its review of the stalled GOPAX acquisition. The 2023 deal had been frozen due to Binance’s U.S. legal battles, now largely resolved. Regulatory clearance could pave the way for approval before year-end.

Binance’s long-awaited return to South Korea is back on track.

Nearly two years after announcing a majority stake in the local exchange GOPAX, South Korea’s Financial Intelligence Unit (FIU) has resumed its review of the deal, according to local reports.

The revival signals a potential breakthrough for Binance, which first announced its acquisition of 67.26% of GOPAX on Feb. 3, 2023, as part of its $1 billion Industry Recovery Initiative.

The deal was quickly derailed by mounting U.S. legal troubles that put the exchange under global regulatory scrutiny.

Why Binance’s Deal Stalled

At the heart of the delay was South Korea’s cautious approach to overseas entities acquiring domestic exchanges.

While the country’s laws do not require a formal “major shareholder screening,” executives and operators must report to the FIU, which can reject applicants tied to financial crimes or sanctions violations.

Binance’s case became complicated after U.S. authorities charged the exchange and its co-founder, Changpeng Zhao (CZ), with violating anti-money-laundering (AML) rules.

Binance paid billions in fines, and CZ served nearly a year in prison. These outstanding legal risks made Korean regulators hesitant to move forward.

Regulatory Climate Shifts

The landscape has shifted this year.

In May, the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Binance, while the Department of Justice (DOJ) and Treasury closed their cases following penalty payments.

With U.S. regulatory concerns lifted, South Korea’s FIU has returned to reviewing the GOPAX acquisition.

Authorities are said to be reviewing GOPAX’s executive change filings favorably, with approval potentially arriving before the end of 2025.

If cleared, the move would re-establish Binance in one of Asia’s most active crypto markets, where it has been absent since regulators forced it out in 2021.

A senior financial industry official told local media, “With all lawsuits related to Binance by the U.S. authorities now dropped, the risk of GOPAX’s major shareholder has also disappeared. There is a high possibility that the executive change report will be accepted within this year.”

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