CEO Richard Teng’s Secret Visit to South Korea
Binance CEO Richard Teng recently made a clandestine trip to South Korea to engage directly with local financial authorities and resolve the challenges hindering the company’s entry into the Korean market.
Engagement with Financial Authorities
Teng’s undisclosed visit to Korea aimed to communicate with various financial authorities, including officials from the Financial Intelligence Unit (FIU), to address the hurdles blocking Binance’s market entry.
- Binance’s acquisition of Gopax in late 2022 as part of its market penetration strategy has faced delays in gaining approval for the change in virtual asset business report from financial authorities.
- The decision to acquire Gopax was driven by the exchange’s inability to return funds to users after the FTX incident involving its virtual asset deposit service ‘GoFi.’
Challenges Faced by Binance
Despite submitting the necessary reports to the FIU, the decision on acceptance has been consistently postponed, impacting Binance’s plans for market entry through the Gopax acquisition.
FIU’s Postponement of Decision on Gopax
The FIU’s delay in accepting Gopax’s change report is rooted in concerns over Binance’s legal risks, particularly after the company received a substantial fine of $4.3 billion from the U.S. Department of Justice.
- The regulatory authority is looking to expand the review scope for virtual asset business renewal reports to include major shareholders, proposing amendments to the Specific Financial Information Act.
- In response to the FIU’s stance, Binance announced plans to sell a portion of its shares in Gopax and relinquish its majority stake in the company.
Teng’s Focus on Governance Improvements
During his visit to South Korea, Richard Teng is set to engage in discussions with government officials regarding governance structure enhancements, particularly aimed at rescuing Gopax.
- Teng’s commitment to compliance, evident since his tenure as Binance CEO, underscores the importance of governance in the company’s operations.
- The direct engagement with Korean financial authorities reflects Teng’s dedication to compliance, building on his previous interactions with Gopax and Jeonbuk Bank.
Hot Take: Seeking Regulatory Clarity in South Korea
As Binance navigates regulatory challenges in South Korea, the company’s efforts to engage with financial authorities and address governance concerns highlight the importance of compliance and transparency in the crypto market.
Sources:
– News 1
– MrPersonalTrader Twitter
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