TechFlow reported that South Korea's financial regulators have suspended the review of an executive change filing submitted by Gopax. The filing includes information on the appointment of three Binance executives as internal directors of Gopax. This move comes after the SEC accused Binance of violating the Securities Act and filed for asset freeze, making it unlikely for Korean authorities to approve the filing.
A source from a South Korean financial regulatory agency said: "Whether to accept the filing is currently under internal review. It is necessary to monitor the developments regarding the SEC’s actions."
Due to the SEC lawsuit, South Korea's financial regulator suspends review of Gopax executive change report
South Korea's financial regulator has suspended its review of an executive change report submitted by Gopax, which includes the appointment of three Binance members as internal directors of Gopax. The move comes amid the SEC's allegations that Binance violated securities laws and its application to freeze Binance’s assets, making it unlikely for South Korean authorities to approve the filing. A source from the financial regulatory agency stated, “Whether to accept the change report is currently under internal review, and it is necessary to monitor developments regarding the SEC.” Previously, South Korea’s financial regulators required Gopax to undergo another risk assessment nine months later. Currently, financial authorities are reviewing the Virtual Asset Service Provider (VASP) change report submitted when Binance acquired Gopax, with the review outcome expected to be delayed until mid-May.
Meanwhile, the delay in reviewing the change report will further postpone the return of funds to users who had deposited money through GoFi, Gopax’s cryptocurrency deposit service. Full payment for the acquisition by Binance and the repayment of 56.6 billion Korean won (approximately $423.9 million USD) in customer funds tied up in GoFi can only occur after the change approval is finalized. Additionally, although the Act on Special Financial Transactions does not currently include provisions related to major shareholder qualifications, the parliamentary committee has proposed amending the law to enable screening of shareholders in large corporations. As such, the situation remains concerning, warranting continued attention.
