Binance-SEC litigation causes a delay in Gopax purchase by South Korean regulators
South Korea’s Financial Services Commission is watching Binance’s legal troubles with the SEC and CFTC.
The SEC action against Binance is one of the factors delaying the South Korean Financial Services Commission’s approval of Binance’s purchase of crypto exchange Gopax.
According to a local news source, the FSC has delayed authorising the ownership transfer. Initially, concerns about potential money laundering at Binance slowed down the deal. However, the CFTC and the SEC’s actions against the exchange have caused more delays.
As a result of the transaction, specific Gopax clients may see changes. After the crypto exchange FTX failed, lousy debt was left in the hands of its product, Gopay.
According to Gopax, the funds utilised to make Gopay would be fine even if the US authorities seized Binance’s assets.
A representative for Binance explained to Newspim that the firm has “bases in many places,” adding that the money for the Gopay refunds is coming through an Irish holding company. The relief industry fund was established via the generosity of partners and early investors, and not only by Binance.
In February, Binance announced the original acquisition, stating that it had purchased a “majority stake” in the abovementioned exchange. Binance said at the time that it was funding the purchase with money from its industry rehabilitation project.