The nation’s financial authority asserted that it was extremely tough to approve the acquisition petitions despite claims of breaking securities regulations.
The SEC’s measures against Binance could hurt the exchange’s chances of doing business in South Korea. The FSC, the nation’s financial watchdog, is apparently looking into Binance’s purchase of regional cryptocurrency trading platform Gopax, which was made with the intention of reentering the South Korean market. In light of the SEC litigation, the FSC has halted Gopax’s executive change report, citing problems in currently accepting the acquisition request.
The nomination of three members of Binance, including its CEO Leon Singh Poong, to serve as inside directors of Gopax was the subject of the FSC’s investigation. allegations of violations of the Securities Exchange Act and efforts from the SEC to freeze Binance.US assets made the acquisition’s approval more difficult.
Binance had announced in March 2023 that it would acquire Gopax for $200 million. However, the SEC lawsuit has raised concerns about Binance’s compliance with US securities laws. As a result, the South Korean Financial Services Commission (FSC) has suspended the acquisition deal.
Binance bought Gopax with the intention of not just reestablishing its footprint in South Korea but also reviving the struggling regional cryptocurrency trading exchange. Following the demise of the FTX cryptocurrency exchange and the bankruptcy of Genesis, a provider of financial services for digital assets, Gopax has encountered difficulties.
In a lawsuit filed by the SEC, Binance was charged with breaking securities laws and mixing up consumer cash. The legal dispute creates considerable difficulties for the exchange’s activities in several nations, including South Korea, with 13 accusations brought against Binance, its companies, and CEO Changpeng Zhao.