FSC: Binance Completes Acquisition of GOPAX... Finalized After Two and a Half Years

[Financial News] Binance, the world's largest virtual asset exchange, has finalized its acquisition of the domestic exchange GOPAX.
According to the virtual asset industry on the 16th, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) completed its review of the change in GOPAX’s major shareholder the previous day. As a result, Binance has secured its status as the largest shareholder approximately two and a half years after acquiring a 67.45% stake in GOPAX in February 2023.
An FIU official stated, "We have completed the review of the change in GOPAX’s major shareholder."
Previously, after acquiring a stake in GOPAX in February 2023, Binance submitted a report on executive changes to the FIU in March of the same year. However, the approval process was delayed as financial authorities took a cautious stance due to concerns over Binance’s Anti-Money Laundering (AML) system.
The review was further prolonged by growing regulatory uncertainty, as Binance was sued by the United States Securities and Exchange Commission (SEC) in 2023 for allegedly providing illegal services and misusing customer funds, and was fined by the U.S. Department of the Treasury (Treasury Department) and the United States Department of Justice (DOJ) for violating AML regulations.
Under current domestic law, there are no separate regulations for major shareholder eligibility reviews for virtual asset exchanges. However, those intending to operate a virtual asset business and their corporate representatives or executives must file a report with the FIU, and anyone convicted of a crime resulting in a fine or greater under the Capital Markets Act, among others, is prohibited from running such a business.
Industry experts note that the financial authorities effectively assessed Binance’s eligibility as a major shareholder by reviewing its executive change report based on these provisions. The resolution of U.S.-related risks for Binance appears to have led to the approval. In May, the SEC withdrew its lawsuit against Binance, and the company has completed payment of fines to the DOJ, concluding the related procedures.
Binance plans to use this decision as an opportunity to actively expand its presence in the Korean market. Richard Teng, CEO of Binance, told local reporters on the 8th of last month, "If the GOPAX acquisition issue is resolved, we will be able to create many business cases in Korea."
yimsh0214@fnnews.com Im Sang-hyuk Reporter