The introduction of Binance, a significant cryptocurrency exchange, into the South Korean market has alarmed the nation’s financial regulators. The world’s largest cryptocurrency exchange, Binance, arrived back in South Korea on February 3. By acquiring a controlling stake in GOPAX, the fifth-largest cryptocurrency exchange in the nation, the company returned after a two-year absence.
Binance’s Entry into South Korea Under Investigation by Regulators
On February 23, the local newspaper Chosun Ilbo warned that Binance’s entry into South Korea would spark an increase in financial crimes there. Financial authorities in South Korea are worried that the lack of transparency around the exchange’s management, governance structure, business strategy, and accounts may increase financial crimes like fraud, money laundering, and operations involving illegally obtained foreign currency.
Inspection by Regulators Worldwide
A virtual asset service provider (VASP) license in South Korea may need to be reapplied for by Binance because the government of the nation is thinking of regulating the exchange. The exchange will once again receive approval for the exchange GOPAX to operate as a virtual asset operator (VASP). Regulators are debating whether to preserve or terminate links between the two parties in light of the exchange’s acquisition of GOPAX.
