- Binance CEO Richard Teng secretly visited Korea to engage authorities on its entry into the Korean market.
- Binance is entering Korea by acquiring Gopax, a local virtual asset platform.
- However, regulators have been stalling approval of Gopax’s proposed change.
According to a local report, Binance CEO Richard Teng made a secret visit to Korea to engage directly with financial authorities to break the deadlock surrounding its entry into the Korean market. The report noted that Binance has been in a prolonged dispute with Korean regulators over acquiring Gopax, a local virtual asset platform.
It began when Binance acquired Gopax in late 2022, intending to tap into the Korean market. However, regulatory hurdles emerged as Korean financial authorities declined to approve Gopax’s change of virtual asset business report for over a year.
To potentially resolve this issue, CEO Richard Teng reportedly entered Korea last Wednesday, March 27. According to local media outlet News1.kr, Teng’s visit includes high-level discussions with officials from the Financial Intelligence Unit (FIU), among other regulatory bodies.
Notably, Binance’s decision to acquire Gopax in 2022 followed Gopax’s inability to reimburse users affected by the fallout of FTX. Binance has assumed responsibility for the outstanding debt accumulated by Gopax.
Upon Binance’s acquisition of a majority stake, Gopax appointed Leon Singh Pung, formerly head of Binance Asia Pacific, as its CEO. Subsequently, a report detailing the alteration in virtual asset business was furnished to the FIU. However, the FIU deferred its verdict on whether to endorse the report.
Subsequently, Gopax replaced its leadership and submitted another revised change report. Yet, the FIU still failed to endorse the report.
The Financial authorities’ reluctance to endorse Gopax’s change reports stems from the perceived judicial risk associated with Binance. This concern intensified following the U.S. government’s substantial fine of $4.3 billion (5.5 trillion won) imposed on Binance at the end of last year.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
