Binance Eyes Full Re-Entry into South Korea Following Gopax Executive Review

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The post Binance Eyes Full Re-Entry into South Korea Following Gopax Executive Review appeared first on Coinpedia Fintech News

South Korea has resumed its review of Binance’s acquisition of local crypto exchange Gopax, potentially paving the way for the world’s largest crypto exchange to fully re-enter the country. 

The Financial Intelligence Unit (FIU) is now examining Gopax’s formal report on changes to key executives, a process that effectively assesses Binance’s qualifications as a controlling shareholder. Regulatory approval could come as early as the end of 2025, marking a major step forward after a two-year pause.

Executive Review Key to Binance’s Regulatory Approval

Under South Korean law, there is no separate system for evaluating major shareholders in crypto exchanges. Consequently, the FIU uses the review of executive changes at Gopax as a proxy to assess Binance’s ownership. 

According to CryptoQuant, Binance first acquired a 67% stake in Gopax in February 2023, becoming the exchange’s largest shareholder. However, approval was temporarily frozen amid anti-money laundering (AML) concerns and Binance’s ongoing legal issues in the U.S. with the SEC and DOJ.

A $4.3 billion settlement Binance later reached with U.S. authorities appears to have eased concerns among South Korean regulators, allowing the review to progress. 

“Binance’s commitment to regulatory compliance and corporate governance is a key factor in the FIU’s renewed assessment,” industry sources said.

Gopax’s Challenges and Binance’s Role in Stabilizing the Exchange

Gopax is among the few exchanges in South Korea authorized to handle cash-to-crypto transactions, requiring strict Know Your Customer (KYC) and AML compliance. The platform faced a major liquidity crisis in early 2023 when its DeFi partner, Genesis Global Capital, froze withdrawals linked to Gopax’s GoFi product, leaving approximately $47 million (₩56.6 billion) inaccessible to users.

Binance’s acquisition was initially framed as a rescue, intended to restore customer confidence and inject funds to compensate affected users. Regulatory delays forced Binance to explore selling part of its stake to local cloud provider Megazone, though the plan fell through in late 2024.

Broader Regulatory Context in South Korea

South Korea has tightened crypto regulations in recent months. In August, regulators ordered exchanges to suspend all crypto lending services until a proper legal framework is established. At the same time, authorities are preparing to approve the country’s first spot crypto ETFs and are drafting a framework for stablecoins pegged to the Korean won.

Local exchanges are adapting to these regulatory changes. Dunamu, the operator of Upbit, recently launched a custody service for institutional clients, storing assets entirely offline in cold wallets to protect against cyber threats.

 “As regulated crypto markets expand, secure storage solutions are increasingly vital for investor protection,” said a Dunamu spokesperson.

Looking Ahead

The FIU’s review of Binance’s Gopax acquisition could be a turning point for the South Korean crypto market. Successful approval would not only allow Binance to re-establish a major presence in the country but also signal growing regulatory confidence in global crypto firms adhering to strict AML and KYC standards.