Binance CEO Richard Teng recently made a secret visit to South Korea in an effort to engage with financial authorities and resolve issues hindering the company’s entry into the Korean market. The acquisition of a majority stake in South Korean crypto exchange Gopax was part of Binance’s strategy to access the high-volume Korean market, but the acceptance of Gopax’s change of virtual asset business report has been delayed for over a year. Binance took on the responsibility for Gopax’s debts after the FTX incident involving its virtual asset deposit service, ‘GoFi,’ and appointed Leon Singh Pung as the CEO of Gopax. Despite submitting reports to the FIU, the decision regarding its acceptance has been postponed repeatedly.
After multiple changes in leadership at Gopax and concerns over Binance’s legal risks following a hefty fine from the U.S. Department of Justice, the FIU has continued to postpone its decision on Gopax’s change report. BF Labs acquired a portion of Binance’s shares, prompting more CEO changes at Gopax. The FIU is looking to expand its review of virtual asset business renewal reports to include major shareholders, proposing amendments to the Specific Financial Information Act. In response, Binance announced its decision to sell a portion of its shares in Gopax and relinquish its majority stake. Additionally, the FIU requested Gopax’s partner bank to submit a plan to enhance Gopax’s governance structure, aiming to decrease Binance’s stake and increase ownership for GoFi users.
During his visit to South Korea, CEO Richard Teng is expected to discuss governance structure improvements with government officials and devise strategies to rescue Gopax. Teng, known for prioritizing compliance, may be engaging directly with Korean financial authorities as a reflection of his commitment to compliance. Before becoming CEO of Binance, Teng had previously visited Korea and met with officials from Gopax and Jeonbuk Bank while serving as a regional market manager. The discussions with Korean authorities will likely focus on finding a resolution to the obstacles facing Binance’s entry into the Korean market and ensuring compliance with regulatory requirements.
The visit by Binance CEO Richard Teng signifies the company’s dedication to addressing issues and finding a way to enter the Korean market successfully. The acquisition of Gopax was a strategic move to tap into the high-volume Korean market, but regulatory challenges have delayed the process. By engaging directly with financial authorities and discussing governance improvements, Teng aims to overcome hurdles and pave the way for Binance’s entry into the Korean market. The focus on compliance and transparency in these discussions reflects Binance’s commitment to operating within regulatory frameworks and building trust with local authorities.
As Binance continues to navigate regulatory challenges in various markets, the visit to South Korea highlights the importance of proactive engagement with financial authorities to ensure compliance and address concerns. The decision to sell a portion of its shares in Gopax and relinquish its majority stake demonstrates Binance’s willingness to cooperate with regulatory requirements and find solutions to regulatory hurdles. By prioritizing governance improvements and compliance discussions during the visit, Binance is taking steps to navigate the complexities of entering the Korean market and building a sustainable presence in the region. Teng’s experience and expertise in compliance and regulatory matters position him well to lead these discussions and drive strategic decision-making for Binance’s operations in South Korea.
