South Korea Approves Binance's Gopax Acquisition After Two-Year Regulatory Review

South Korean financial authorities have approved Binance's acquisition of local cryptocurrency exchange Gopax after a two-and-a-half-year regulatory review, marking the world's largest crypto exchange's formal entry into the Korean market.

The Financial Intelligence Unit completed its review of Gopax's executive change report late on October 15, according to local media outlet MK on Thursday. Binance acquired a 67% stake in Gopax in February 2023 and submitted executive registration documents the following month, but approval remained pending amid regulatory concerns.

Korean authorities delayed acceptance of the executive change report while examining whether Binance's entry as Gopax's major shareholder could affect South Korea's anti-money laundering system, MK reported. The prolonged review reflected caution about Binance's regulatory track record in other jurisdictions.

Binance faced significant legal challenges in the United States during the review period. The U.S. Securities and Exchange Commission charged Binance in June 2023 with illegally providing services to American users and improperly handling customer funds, according to MK's reporting.

The U.S. Treasury Department and Department of Justice also accused Binance of violating anti-money laundering systems, resulting in a $4.3 billion fine. These enforcement actions raised concerns among Korean regulators about allowing Binance control of a domestic exchange.

The approval suggests Korean authorities concluded Binance's U.S. settlements and compliance improvements addressed concerns about the exchange's adherence to anti-money laundering standards. The resolution of American regulatory issues appears to have influenced Korea's decision to complete the review.

Under current Korean law, virtual asset exchanges do not face separate eligibility screening for major shareholders. Only individuals operating virtual asset businesses and corporate representatives and executives must report to the FIU, according to MK.

The approval allows Binance to formally operate through Gopax in South Korea's significant cryptocurrency market. South Korea has high retail crypto adoption rates and substantial trading volumes, making it a strategic market for global exchanges despite strict regulatory oversight.

Gopax represents Binance's acquisition strategy of entering markets through local partnerships rather than applying for direct licensing. The approach allows Binance to access regulated markets while navigating complex local requirements through established entities.

South Korea maintains comprehensive cryptocurrency regulations including real-name trading accounts linked to bank accounts and strict anti-money laundering requirements. Domestic exchanges must partner with banks willing to provide virtual account services, creating barriers to market entry.

Gopax operates as one of several licensed exchanges in South Korea alongside larger domestic platforms like Upbit and Bithumb. Binance's resources could enable Gopax to compete more aggressively, though established players maintain strong market positions and banking relationships.