South Korean Financial Services Commission Monitors Binance Lawsuit Amid Delay in Gopax Acquisition Approval
The South Korean Financial Services Commission (FSC) has decided to closely monitor the ongoing lawsuit involving Binance, a prominent cryptocurrency exchange. Additionally, the approval process for Binance’s acquisition of Gopax, a South Korean cryptocurrency exchange, is experiencing delays.
In April, the FSC postponed the report and acceptance of the acquisition to investigate suspicions of money laundering associated with the exchange. On June 7, the FSC further postponed the evaluation of Gopax’s executive change report, which includes details about the appointment of three Binance members as internal directors of Gopax.
Industry experts anticipate that South Korean authorities might reject this modification report due to the recent allegations by the US Securities and Exchange Commission (SEC) against Binance for potential violations of the Securities Act and the subsequent freezing of assets.
A representative from the Korean financial regulatory body stated, “It is cautious to confirm whether the report is being accepted or not as it is currently under internal review. Although the eligibility conflict for major shareholders is not covered under the Special Financial Transactions Act, I am aware that there is a proposed amendment by the Political Affairs Commission to include a review of major shareholders similar to the Corporate Governance Act.”
As a result, the approval process for the Gopax operator change report is expected to be delayed. If Binance’s acquisition of Gopax fails, it could impede the withdrawal of GoFi deposit assets. This is because Binance has provided a guarantee to repay Gopax’s capital and interest in full if the acquisition agreement with Gopax is finalized.
GoFi is a product that attracts those who entrust virtual assets to Gopax. However, due to the bankruptcy of US virtual asset deposit and lending firm Genesis, which managed Gopax deposits, customer virtual assets have been unable to be released.
According to a Gopax official, approximately 75% (approximately 56.6 billion won) of the funds still need to be repaid. The official assured that they are making their best efforts to repay Gopax users.
It was previously assumed that the seizure of Binance’s assets would not affect the repayment of GoFi. However, South Korean financial authorities have requested that Gopax conduct another risk assessment, and they are carefully examining the Virtual Asset Service Provider (VASP) change report submitted by Binance during the acquisition of Gopax.
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