Binance to Sell GOPAX Shares Amid Regulatory Hurdles in South Korea

• A snag in the licensing process for significant shareholder modifications has occurred.
• FSC has voiced concerns about Binance’s capital sufficiency and governance structure.

As regulatory hurdles continue to pile up, crypto exchange Binance has stated its plan to sell its shares in GOPAX, a significant exchange in the South Korean crypto market.

As the biggest stakeholder with a substantial 72.26% stake, Binance established its relationship with GOPAX via its purchase of the exchange. Part of Binance’s plan to strategically expand into important global areas, including Korea, was this purchase.

Number of Obstacles

Regulatory hurdles, however, have thwarted Binance’s expansion plan. A snag in the licensing process for significant shareholder modifications has occurred because the Financial Services Commission (FSC) of Korea has voiced concerns about Binance’s capital sufficiency and governance structure.

The Korean market has presented Binance with a number of regulatory challenges. An important milestone for Binance’s GOPAX stake, the approval procedure for substantial shareholder modifications is the main obstacle.

Regarding Binance’s capital sufficiency and governance structure, the Korean Financial Services Commission (FSC) has voiced concerns. Obtaining the requisite regulatory permits has become much more difficult due to these issues. Crypto exchanges throughout the world are being subject to more regulatory scrutiny, and the FSC’s tough attitude is reflective of that trend.

Binance has decided to sell its shares in GOPAX because of the regulatory deadlock. This choice is based on the practical understanding that staying on top of regulations while yet having a substantial stake in GOPAX is an impossible task. Binance plans to refocus its business goals and reduce regulatory risks by selling off its stakes.

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