“Binance’s Entry into South Korea Market via Gopax Might Be Hindered Due to Regulatory Non-Compliance”
The recent revelation of Binance’s failure to comply with U.S. regulations might limit its entry into the South Korean markets through Gopax. The acquisition offer presented by Binance for Gopax has yet to be accepted by the South Korean Financial Services Commission (FSC). This delay in acquisition approval could be seen as a cautious green light, according to analyst Jeong Hye-Won.
The South Korean cryptocurrency exchange, Gopax, has faced repercussions following the recent disclosure of Binance’s non-compliance with anti-money laundering regulations.
Speculation surrounds potential restrictions on Gopax’s local market entry. Struggling amidst regulatory challenges akin to those encountered by Binance, which culminated in its complete withdrawal earlier this year, Gopax finds itself embroiled in a crisis.
In an attempt to re-enter the South Korean cryptocurrency market, Binance’s proposal underwent scrutiny by the South Korean Financial Services Commission (FSC), taking into account the lawsuit filed by the U.S.
Securities and Exchange Commission (SEC) against the exchange. Commenting on the potential repercussions of Binance’s recent security breaches on Gopax, analyst Jeong Hye-Won highlighted the reasons for the delayed acceptance of the business change:
“If it’s due to legal risks, it has raised concerns about Binance’s expansion in the local market. This could be seen as a green light, but if there are concerns about Binance’s capital inflow into the country, the impact of this incident will be minimal .
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Korbit’s Research Center President, Jeong Seok-Moon, stated, “With the resignation of Binance CEO Changpeng Zhao, I believe another justification (issues with major shareholders’ eligibility) has been established for local financial authorities to disapprove Gopax.”
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