Breaking: Binance Targeted By South Korea Regulators After US Regulatory Action
Crypto exchange Binance’s entry into the South Korean crypto market has raised concerns amid financial authorities in the country. The world’s largest exchange Binance acquired a majority stake in South Korea’s fifth-largest crypto exchange GOPAX on February 3 to re-enter South Korea after two years.
Binance’s entry into South Korea risks an increase in financial crimes in the country, reported local media Chosun Ilbo on February 23. According to South Korean financial authorities, financial crimes such as money laundering, illegal foreign exchange transactions, and fraud could increase due to hidden details on Binance’s management, governance structure, business method, and accounts.
A high-ranking official from the financial authorities said:
“If Binance conducts exchange business in South Korea, it will be difficult to properly supervise it. There is a possibility of outflow of national wealth through the distribution of several unverified overseas listed coins.”
The South Korean regulator is considering regulating Binance, requiring it to reapply for a virtual asset service provider (VASP) license in the country. GOPAX under new owner Binance will be re-accredited as a virtual asset operator (VASP). The authorities are reconsidering whether to continue or remove bank’s ties with GOPAX after the acquisition by Binance.
Binance purchased the majority stake from CEO Lee Jun-haeng, who had a 41.2% stake in GOPAX. Barry’s Silbert’s Digital Currency Group is the second largest shareholder of GOPAX. The crypto exchange Gopax has already replaced key executives with Binance personnel, such as appointing Binance’s Asia Pacific representative Leon Pung as the new CEO.
Binance Facing Regulatory Attack in the U.S.
Binance faces heightened scrutiny following the collapse of FTX. The US SEC and the NYDFS targeted Paxos to stop minting Binance USD (BUSD) stablecoin on Feb 13, defining it as a security.
The U.S. DOJ is investigating Binance for possible money laundering violations. Moreover, Binance announced that it is ending business relationships with partners in the U.S. due to stringent regulatory conditions.
However, South Korea’s regulators also consider ending Upbit’s monopoly in the country with Binance’s entry in South Korea.
Also Read: Ethereum Price To Hit $2,000? Popular Analyst Predicts Best Level To Buy
- BSC Meme Season Ends as PumpFun Surpasses Four Meme Amid $8M Inflows
- ProShares Files for Index Crypto ETF Tracking Bitcoin, Ethereum, XRP, and Solana
- Trump Says Meeting with China May Not Happen, Bitcoin Drops
- The Great Rotation? Bitcoin Rises as Gold Sees Largest Daily Drop Since 2013
- Crypto Czar David Sacks to Meet Senate Republicans In Bid To Advance Market Structure Bill
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
