Binance, the largest in the world cryptocurrency exchange in terms of trading volume, successfully completed its acquisition of South Korean digital asset exchange Gopax.
Binance’s Gopax participation finalized
On October 16, industry sources reported that South Korean financial authorities had finalized their review of Gopax’s management changes, which had been pending for a long period. Binance initially acquired a 67% stake in Gopax in February 2023, positioning itself as a major shareholder.
However, the approval process for executive changes submitted to the Financial Intelligence Unit (FIU) had been stalled for almost two and a half years, with regulators cautious about the potential implications of Binance’s ownership on South Korea. fight against money laundering (AML).
The scrutiny surrounding Binance is heightened by its legal troubles in the United States, where the Securities and Exchange Commission (SEC), under its former chairman Gary Gensler, accused the exchange in June 2023 of illegally providing services to American customers and misappropriating customer funds.
The US Treasury Department and the Department of Justice (DOJ) also accused Binance of violating AML regulations, resulting in a hefty fine of $4.3 billion. This ultimately led to the exchange’s former CEO, Changpeng Zhao, CZ, resigning and serving a four-month prison sentence.
France steps up anti-money laundering efforts for crypto exchanges
Currently, South Korean law does not impose a separate eligibility screening process for major shareholders of cryptocurrency exchanges. Instead, the regulation requires those seeking to operate in the digital assets sector, as well as their executives, to report to the FIU.
Additionally, individuals who have been fined for offenses related to concealment of proceeds of crime, financing of terrorism, or violations of foreign exchange and capital market laws are prohibited from operating a business in this sector. This regulatory framework has led South Korean authorities to carefully evaluate Binance’s qualifications to enter the market.
At the same time, France is stepping up its anti-money laundering efforts regarding cryptocurrency exchanges. According to According to Bloomberg, regulators are working to evaluate more than 100 entities registered to offer crypto services, with the aim of determining which ones will receive authorizations to operate in the European Union.
The French prudential supervision and resolution authority, known as ACPR, has been carrying out extensive checks on numerous exchanges, including Binance, since the end of last year, according to confidential sources familiar with the matter.
At the time of writing, Binance Coin (BNB), the exchange’s native token, was one of Friday’s worst performers following weeks of major rallies to new all-time highs above $1,360. The fourth-largest cryptocurrency by market capitalization is currently trading at $1,074, having posted losses of 7% over the past 24 hours.
Featured image of DALL-E, chart by TradingView.com
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