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Binance CEO’s Secret Visit to South Korea Amidst Market Entry Hurdles

Binance CEO’s Secret Visit to South Korea Amidst Market Entry Hurdles

Binance CEO Richard Teng recently undertook a discreet visit to South Korea, seeking direct engagement with domestic financial authorities to address hurdles hindering the company's entry into the Korean market.

Teng’s visit, undisclosed until now, was reportedly aimed at communicating with officials from the Financial Intelligence Unit (FIU) and other regulatory bodies. According to a recent report by News 1, the move comes as Binance’s plans to establish a direct presence in the South Korean market by acquiring a majority stake in the local crypto exchange Gopax have encountered obstacles.

The acquisition of Gopax at the end of 2022 was a strategic move by Binance to penetrate the Korean market. However, delays in the acceptance of Gopax’s change of virtual asset business report by financial authorities have impeded Binance’s plans for market entry.

The report suggests that Binance’s decision to acquire Gopax stemmed from the exchange’s failure to refund users following the FTX incident involving its virtual asset deposit service, ‘GoFi.’ In assuming responsibility for GoFi’s debt as the majority shareholder, Binance appointed Leon Singh Pung, the former head of Binance Asia Pacific, as CEO of Gopax.

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Despite efforts to navigate regulatory hurdles, challenges persist for Binance in its quest to solidify its position in the Korean market. The Financial Intelligence Unit (FIU) has reportedly been reluctant to accept Gopax’s change report, citing concerns over Binance’s legal risks.

Binance’s recent announcement to sell a portion of its shares in Gopax and relinquish its majority stake underscores the complexity of the situation. Additionally, the FIU has requested Gopax’s partner bank, Jeonbuk Bank, to submit a plan to enhance Gopax’s governance structure by the end of March.

During his visit to South Korea, CEO Richard Teng is expected to engage in discussions with government officials regarding governance structure improvements and strategies to address regulatory concerns surrounding Gopax.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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