Binance faces turbulence in South Korea, how did BNB react?
According to South Korean news outlet Chosun, Binance [BNB] acquired a 50% stake in Gopax, a native crypto exchange, on 23 February. This is part of Binance’s strategy to gain a foothold into South Korea. In addition, Leon Gong, the former Asian Pacific representative of Binance recently took over as Gopax’s new CEO.
<p lang=«en» dir=«ltr» xml:lang=«en»>According to the Chosun Ilbo, after Binance acquired the South Korean exchange Gopax, regulators may require it to reapply for virtual asset operator certification; banks are considering whether to continue to provide accounts. But it could also be attacking information being… https://t.co/Xcgl3LwhA1— Wu Blockchain (@WuBlockchain) February 23, 2023
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Despite these calculated moves, South Korean financial authorities have expressed concerns about Binance taking over. Allegedly, the move will pave the way for money laundering and financial crimes through unverified coins that are listed on the exchange. They said:
“It is difficult to properly manage and supervise if the finance starts operating the exchange in the country. There is also the possibility of local outflows through the distribution of several unverified overseas listed coins.”
The publication also revealed that South Korean financial authorities have reviewed alternative regulatory measures for Gopax after changes caused by Binance’s involvement. This hiccup might be a major hurdle for Binance, but it will have to conform to the regulatory requirements to maintain operations in the country.
South Korea is rapidly becoming one of the most attracting Asian jurisdictions for crypto startups and companies. But despite the challenges in the South Korean market,
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