South Korea’s Financial Intelligence Unit (KoFIU) has authorised Binance to acquire a majority stake in the domestic cryptocurrency exchange GOPAX. The move concluded a two-year regulatory process that had delayed the company’s re-entry into the local market. The approval enables Binance to take control of GOPAX’s management, resume its Korean operations, and move forward with user repayment plans linked to past product failures. Local media first reported the regulator’s decision on Wednesday, later confirmed by GOPAX through an official update.
Regulatory process and compliance considerations
GOPAX stated that regulators had accepted its filing for board changes, describing it as part of ongoing efforts to support corporate oversight and meet local compliance standards. Representatives from the exchange said they are working closely with Binance to ensure more responsible management and to resolve remaining obligations to users affected by the collapse of its GOFi lending product, which had exposure to Genesis Global Capital.
Binance initially announced its investment in GOPAX in 2023, but the transaction had been held up since early that year while authorities reviewed the exchange’s governance suitability. The extended delay followed concerns over Binance’s international compliance history and the legal proceedings that resulted in its founder’s conviction in the United States. The settlement, valued at approximately USD 4.3 billion, led to structural reforms at Binance and leadership changes aimed at improving oversight.
Market impact and industry reaction
The regulatory approval opens one of Asia’s largest cryptocurrency markets to Binance after its 2021 withdrawal, which came in the context of tighter enforcement of real-name account rules and anti-money-laundering requirements.
Industry analysts described the move as regulatory normalisation rather than a disruptive market shift. Binance will face a highly concentrated exchange landscape dominated by Upbit and Bithumb, which together control more than 95% of local trading volumes, according to data from Kaiko Research.
Representatives from GOPAX and Binance did not provide immediate comment, but observers noted that Binance’s local presence will likely remain limited in the short term due to restrictions on cross-border liquidity sharing and Korea’s strict capital controls. Analysts added that future growth would depend on how effectively GOPAX can integrate Binance’s technology and liquidity infrastructure while adhering to domestic compliance standards.
