South Korea’s FIU Reopens Door for Binance’s Comeback: Report

• FIU restarts Binance–Gopax review, signalling possible re-entry into South Korea.
• Binance cleared major U.S. legal cases, renewing regulator confidence in its compliance.
• Approval could restore Binance’s foothold and reshape South Korea’s crypto landscape.

South Korea’s Financial Intelligence Unit (FIU) has restarted its review of Binance’s purchase of the local crypto exchange Gopax. The move indicates regulators are again assessing Binance’s eligibility as a key shareholder. This development could clear the way for the global exchange’s return to the Korean market.

The FIU’s current review focuses on recent changes in Gopax’s key executives and shareholders. This process acts as a substitute for assessing Binance’s qualifications as a controlling shareholder since South Korea lacks a separate framework for evaluating major crypto stakeholders. Approval could come by the end of 2025, marking Binance’s most significant advance in the region since its 2021 withdrawal.

Binance’s Gopax Deal Revives After U.S. Legal Storm Clears

Binance first acquired a 67% stake in Gopax in February 2023. The deal was aimed at stabilising the local exchange after its partner, Genesis Global Capital, froze withdrawals tied to Gopax’s GoFi product. 

The suspension left nearly $47 million (₩56.6 billion) inaccessible to users. Binance positioned its investment as a recovery initiative to compensate affected customers and restore market trust.

The progress of regulation in the U.S. rapidly stalled amid legal challenges.In mid-2023, the SEC filed fraud charges against Binance for offering unregistered services to U.S. investors. The regulator also accused the exchange of misusing customer funds. The exchange was subsequently accused by the Department of Justice (DOJ) and the Treasury Department of violating anti-money laundering (AML) laws.

Binance resolved all of these cases by accepting a $4.3 billion fine that was among the largest ever levied in the cryptocurrency industry. Resolving these cases was considered an important step toward improving the company’s regulatory record. South Korean officials put Gopax’s approval on hiatus during that turmoil, but are now rethinking their position after the legal settlement.

Gopax’s Role Strengthens as Binance Awaits Regulatory Nod

Gopax remains one of the few South Korean exchanges authorised to conduct cash-to-crypto trades. These operations demand strict Know Your Customer (KYC) and AML standards. The FIU’s evaluation of the exchange’s executive changes is therefore crucial for ensuring that Binance’s influence aligns with domestic financial integrity rules.

The exchange’s earlier liquidity crisis made its partnership with Binance. Without the acquisition, Gopax risked permanent damage to customer confidence. Binance’s intervention was intended to stabilise the platform, inject liquidity, and recover user funds affected by Genesis Global Capital’s default. The recent reopening of the review indicates Seoul’s renewed willingness to allow controlled foreign participation in its crypto infrastructure.

Also Read: Softbank’s PayPay Acquires 40% Stake in Binance Japan

Meanwhile, South Korea has tightened oversight of the digital asset sector. In August, regulators suspended all crypto lending services until a formal legal framework is established. They are also preparing to approve the country’s first spot crypto exchange-traded funds (ETFs) and draft rules for stablecoins pegged to the Korean won.

Dunamu, which operates Upbit, proposed a custody solution for large investors that never goes online to minimize internet-related risks. The steps reflect a broader national effort to impose more robust security, transparency and discipline on digital exchanges.

South Korea has no specific system to assess the leading shareholders of crypto exchanges. In its place, they scrutinize executive change filings as an indicator of whether ownership is appropriate. If approved, Binance could be back in South Korea’s cryptocurrency market at the end of 2025, becoming the largest exchange to have returned since leaving in 2021

The move would boost its local presence and showing of adherence to the strictest global rules. Industry observers see the shift as a major test of South Korea’s willingness to strike a balance between regulatory caution and innovation in an emerging crypto economy.