Surprise Visit: Binance CEO Courts Korean Regulators At Gopax

A local source claims that Binance CEO Richard Teng travelled covertly to Korea in order to speak with financial regulators face-to-face and resolve the impasse over the company’s planned launch into the Korean market. According to the article, Binance and Korean officials have been at odds for a while over Binance’s attempt to buy Gopax, a regional virtual asset marketplace.

The saga commenced with Binance’s acquisition of Gopax in late 2022, aiming to penetrate the Korean market. Nevertheless, complications arose as regulatory obstacles surfaced, with Korean financial authorities withholding approval for Gopax’s alteration of its virtual asset business report for more than a year.

In an effort to address the issue, CEO Richard Teng purportedly arrived in Korea on Wednesday, March 27. As reported by local media outlet News1.kr, Teng’s visit encompasses high-level discussions with officials from the Financial Intelligence Unit (FIU) and other regulatory bodies.

Significantly, Binance’s acquisition of Gopax in 2022 stemmed from Gopax’s failure to compensate users impacted by the repercussions of FTX. Binance has taken on the responsibility for settling the outstanding debts accrued by Gopax.

Gopax Faces FIU Hurdles Post-Binance Acquisition

After Binance acquired a controlling interest, Gopax named Leon Singh Pung, previously the head of Binance Asia Pacific, as its CEO. Following this change, a report outlining modifications in virtual asset operations was submitted to the FIU. Nonetheless, the FIU postponed its decision regarding endorsement of the report.

Afterward, Gopax underwent a leadership change and submitted a revised change report once more. However, the FIU still did not endorse the report.

However, Owing to the legal complications, the FSC has postponed its acceptance of a submitted report detailing the change of registered board members by Gopax. This report encompasses the appointment of three Binance executives to Gopax’s board. Simultaneously, Binance faces scrutiny from the SEC for its involvement in facilitating trading of unregistered securities.

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