Cryptocurrency exchange Binance has completed the last steps before purchasing South Korea-based exchange Gopax, filing a report with the local financial authority. Now, the financial regulators are undergoing a risk review process of Gopax's VASP (Virtual Asset Service Provider) change report. The Korean Financial Intelligence Unit (FUI) is expected to deliver its evaluation finding no sooner than mid-May.
Upon investigation, it came to light that the Financial Supervision Service requested Jeonbuk Bank to conduct a risk assessment on the exchange. Gopax was previously expected to complete this process in August of last year, but it was moved up to April of 2021. This review is part of the process to analyse the recent changes in Gopax’s registered executives, as well as the changed major shareholder of the company, Binance, as showed in the change report.
The FUI was originally expected to conclude their assessment within 45 days of receiving the change report. However, they asked for more documentation, which has caused the process to be extended past the original deadline.
The extended review process is causing a delay in the return of user funds within GoFi, the exchange's crypto deposit service. After the review is finished, Binance is able to complete the purchase of Gopax and refund customers their total principle, plus interest, which amounts to be worth an estimated $42.39 million.
In light of the delayed repayment of user funds, a Gopax official stated: "Binance and Gopax are working to prioritize user protection, and the financial authorities see no cause for concern. We politely ask users to wait a little longer for their funds.”
The purchase of Gopax adds yet another entity controlled by Binance to the list of exchanges operating out of South Korea, which is becoming a major hub for cryptocurrency and blockchain technology. Hopefully, the FUI will conclude its assessment of the change report soon, allowing users to have access to their funds, and for Binance to extend its influence on cryptocurrency into the region.
Ethan Garcia
- 2023-04-24
Binance's Purchase of South Korea-based Exchange Gopax
Binance’s purchase of South Korea-based exchange Gopax is underway. The Financial Supervision Service is currently assessing the VASP change report. Upon conclusion of the review, user funds will be returned, estimated to be worth around $42.39 million.
