Binance's U.S. Legal Wrap-Up Clears South Korea's Regulatory Hurdles

South Korea has resumed its long-stalled review of Binance's acquisition of local cryptocurrency exchange Gopax, signaling a potential comeback for the global exchange in the country's market after more than two years. The Korea Financial Intelligence Unit (FIU) recently began assessing Gopax's "executive change report," a critical step toward formal approval of Binance's majority ownership. If completed by year-end 2025, the process would allow Binance to re-enter South Korea, where it shuttered operations in 2021.

The delay in the review, which began in March 2023, was primarily tied to Binance's legal troubles in the United States. The U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) accused the exchange of violating anti-money laundering (AML) laws and operating unregistered services, leading to a $4.3 billion settlement in November 2023. South Korean regulators, wary of Binance's global compliance history, had paused the approval process until these issues were resolved. The SEC's dismissal of its remaining lawsuit against Binance in May 2025 appears to have alleviated these concerns, prompting the FIU to restart its evaluation.

Under South Korean law, there is no direct shareholder approval process for crypto exchanges. Instead, the review of executive changes at Gopax effectively serves as an indirect assessment of Binance's suitability as a controlling stakeholder. This framework has allowed regulators to maintain oversight without creating a separate regulatory pathway for major crypto investors. An unnamed financial official noted that the U.S. resolution of Binance's legal cases has "eliminated the risk of GOPAX's major shareholder," making approval likely by year-end.

Gopax itself has been a focal point of regulatory scrutiny. The exchange faced a liquidity crisis in early 2023 when its DeFi partner, Genesis Global Capital, froze $47 million in customer funds, prompting Binance's $67% stake acquisition to stabilize operations. Despite this, Binance explored selling part of its stake to local cloud provider Megazone in 2024 to reduce ownership, but the deal collapsed. The FIU's current favorable stance suggests Binance will retain its controlling position, with final approval expected to formalize its return to South Korea's crypto market.

The resumption of the review aligns with South Korea's broader regulatory shift toward a balanced approach to crypto innovation. While authorities have imposed restrictions on lending services and mandated stricter AML protocols, they are also preparing to approve the country's first spot crypto ETFs and developing a stablecoin framework pegged to the Korean won. This strategy reflects an effort to attract institutional investment while mitigating financial risks.

Binance's potential re-entry could reshape South Korea's crypto landscape. The exchange's compliance upgrades, including a court-appointed monitor under the U.S. settlement, may bolster confidence in its operations. Meanwhile, local exchanges like Upbit are expanding custody services for institutional clients, signaling growing demand for secure crypto infrastructure.

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[2] This is the Full Title of the Second News Article (https://www.theblock.co/post/374486/binance-south-korea-gopax-review)

[3] This is the Full Title of the Third News Article (https://cryptonews.com/news/south-korea-resumes-review-of-binances-gopax-acquisition-after-two-year-pause/)

[4] This is the Full Title of the Fourth News Article (https://www.panewslab.com/en/articles/bd85db06-6e25-410e-966f-9bf4dfc0bbcd)

[5] This is the Full Title of the Fifth News Article (https://www.gate.com/news/detail/14778623)

[6] This is the Full Title of the Sixth News Article (https://cryptorank.io/news/feed/3ec0a-south-korea-resumes-review-of-binances-gopax-acquisition-after-two-year-pause)

[7] This is the Full Title of the Seventh News Article (https://cointelegraph.com/explained/binance-and-tether-are-watching-korea-closely-heres-why)

[8] This is the Full Title of the Eighth News Article (https://fincrimecentral.com/south-korea-crypto-genius-act-stablecoin/)

[9] This is the Full Title of the Ninth News Article (https://www.cnbc.com/2025/05/29/sec-drops-binance-lawsuit-ending-one-of-last-remaining-crypto-actions.html?msockid=0f7aa4c20d3f6c8b2c33b2470cbe6d37)

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[12] This is the Full Title of the Twelfth News Article (https://fincrimecentral.com/binance-civil-enforcement-aml-dismissal/)