**Binance Completes Acquisition of South Korea’s Gopax Amid Regulatory Scrutiny**
*Trusted editorial content, reviewed by leading industry experts and seasoned editors.*
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Binance, the world’s largest cryptocurrency exchange by trading volume, has successfully finalized its acquisition of South Korean-based digital asset exchange Gopax.
### Binance’s Gopax Stake Finalized
On October 16, industry sources reported that South Korean financial authorities had completed their review of Gopax’s executive changes, which had been pending for an extended period.
Binance initially acquired a 67% stake in Gopax back in February 2023, positioning itself as a major shareholder. However, regulatory approval for the executive changes submitted to the Financial Intelligence Unit (FIU) was delayed for nearly two and a half years. Authorities were cautious about the potential impact of Binance’s ownership on South Korea’s anti-money laundering (AML) framework.
### Heightened Scrutiny Due to Legal Challenges in the US
The scrutiny around Binance has intensified due to its ongoing legal troubles in the United States. In June 2023, the Securities and Exchange Commission (SEC), under former Chair Gary Gensler, accused Binance of unlawfully providing services to US customers and misappropriating customer funds.
Additionally, the US Treasury Department and the Department of Justice (DOJ) charged Binance with violating AML regulations, resulting in a substantial $4.3 billion fine. These legal issues ultimately led Binance’s former CEO, Changpeng Zhao (CZ), to resign and serve a four-month prison sentence.
### South Korea’s Regulatory Framework and Market Entry Considerations
Currently, South Korean law does not require a distinct eligibility screening process specifically for major shareholders of cryptocurrency exchanges. Instead, individuals seeking to operate in the digital asset sector—and their executives—must report to the FIU.
Furthermore, anyone fined for offenses such as concealing criminal proceeds, financing terrorism, or violations of foreign exchange and capital market laws is prohibited from operating a business in this sector. This regulatory environment has prompted South Korean authorities to thoroughly evaluate Binance’s qualifications for entering the market.
### France Intensifies AML Efforts for Crypto Exchanges
Meanwhile, France is increasing its anti-money laundering efforts targeting cryptocurrency exchanges. According to Bloomberg, regulatory bodies are assessing over 100 entities that registered to offer crypto services, determining which will receive operational permits across the European Union.
The French prudential supervision and resolution authority (ACPR) has been conducting rigorous checks on numerous exchanges—including Binance—since late last year, according to confidential sources familiar with the situation.
### Binance Coin (BNB) Performance Update
At the time of writing, Binance Coin (BNB), the exchange’s native token, has been one of the worst performers on Friday. After weeks of major rallies pushing its price to new all-time highs above $1,360, BNB is currently trading at $1,074—a 7% loss over the last 24 hours.
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*Featured image generated by DALL-E. Chart data sourced from TradingView.com.*
https://bitcoinist.com/binance-expands-footprint-in-south-korea/
