Seoul, South Korea (Reuters) - Richard Teng, the Chief Executive Officer (CEO) of Binance, the world's largest cryptocurrency exchange, reportedly made a secret visit to South Korea on March 27 to discuss regulatory issues with the nation's authorities, according to local media outlet News1.kr.
Teng's visit was focused on addressing regulatory concerns surrounding Binance's acquisition of Gopax, a South Korean cryptocurrency exchange, in late 2022. The CEO engaged in discussions with officials from the South Korean Financial Intelligence Unit (FIU) and other regulatory agencies. However, due to the confidential nature of the visit, the outcome and full details of the meetings remain undisclosed.
FTX Collapse and Gopax Acquisition
Binance's decision to acquire Gopax came at a time when the South Korean exchange was facing a severe financial crisis following the collapse of The Futures Exchange (FTX) in late 2022. Gopax struggled to reimburse its affected users, making Binance's offer to assume responsibility for the accumulated debt an attractive proposition.
After completing the acquisition, Leon Singh Ping, the former head of Binance Asia Pacific, assumed the role of Gopax CEO. The company submitted documentation reflecting the change in ownership and the appointment of a new CEO to the FIU, but the regulatory body remained silent on the matter.
Regulatory Hurdles and Compliance Efforts
Suspecting that the FIU's silence might indicate disapproval, Gopax decided to overhaul its executive board and submitted another report. However, the FIU still failed to endorse the changes, citing Binance's perceived legal risk as a significant concern, particularly in light of the $4.3 billion fine imposed on Binance by the U.S. Department of Justice (DOJ) late last year.
Teng's visit to South Korea aims to address these compliance issues and salvage Gopax by engaging directly with the country's financial authorities. This move aligns with Teng's commitment to compliance since assuming the role of Binance's CEO.
