Key Points
- Binance is close to re-entering the South Korean market, with local authorities reviewing its acquisition of Gopax.
- The review is progressing favorably after being delayed due to anti-money laundering concerns.
Binance, the leading cryptocurrency exchange, is on the brink of its much-anticipated return to South Korea. The review of Binance’s acquisition of the local exchange, Gopax, has resumed after a two-year delay.
South Korea’s Financial Intelligence Unit (FIU) is currently examining Gopax’s report on changes to its key executives. This process is directly related to Binance’s 67% ownership stake. The review, previously halted due to anti-money laundering concerns, is reportedly moving in a positive direction. If the FIU approves, Binance could officially re-enter the Korean market by the end of 2025.
Regulatory Considerations
In South Korean law, there is no distinct method for evaluating the suitability of major shareholders in crypto exchanges. Therefore, the FIU’s executive review essentially serves as a test of Binance’s qualifications as a controlling shareholder.
Binance first acquired a majority stake in Gopax in February 2023, following Gopax’s liquidity crisis linked to Genesis Global Capital’s bankruptcy. Binance and Gopax submitted an executive change report to the FIU, but the review was stalled due to scrutiny in the United States, where Binance was accused of operating without proper registration and violating anti-money laundering laws. The settlement of these accusations has seemingly eased some of the concerns held by South Korean regulators.
Crypto Demand in South Korea
Meanwhile, South Korean investors continue to show a significant interest in crypto-related assets. During the weeklong Chuseok holiday, domestic traders invested approximately $1.24 billion into US tech and crypto-linked stocks.
Investors purchased approximately $105 million worth of Iris shares, $96 million in Tesla, and $100 million in Meta. The T-REX 2X Long BMNR Daily Target ETF saw $95 million in net buys, indicating substantial demand for the next best crypto play in 2025.
