Binance CEO Richard Teng’s Visit to South Korea to Tackle Market Entry Challenges: Report

Binance CEO’s Visit to South Korea

Binance CEO Richard Teng recently made a secret visit to South Korea to engage with domestic financial authorities and address the challenges hindering the company’s entry into the Korean market.

Background

At the end of 2022, Binance acquired a majority stake in the South Korean crypto exchange Gopax as part of its market penetration strategy. However, the acceptance of Gopax’s change of virtual asset business report by financial authorities has been delayed for over a year, causing obstacles to Binance’s market entry.

Current Developments

Despite efforts to resolve the issues, including replacing CEOs and submitting multiple reports to the Financial Intelligence Unit (FIU), the decision on Gopax’s change report continues to be postponed.

FIU’s Concerns

The FIU’s hesitation to approve Gopax’s report is influenced by concerns over Binance’s legal risks, especially after Binance faced a significant fine from the U.S. Department of Justice. This has led to discussions about Binance’s eligibility as a majority shareholder.

Recent Actions

In response to the FIU’s stance, Binance announced plans to sell a portion of its shares in Gopax and reduce its majority stake. Additionally, Gopax requested its users to convert bonds into stocks to decrease Binance’s ownership.

CEO’s Initiative

During his visit to South Korea, CEO Richard Teng aims to discuss governance improvements with government officials and strategize on rescuing Gopax. Teng’s focus on compliance and direct engagement with Korean financial authorities highlights his commitment to regulatory standards.