Binance stresses compliance as it waits for regulatory approval in Korea

Binance CEO Richard Teng, left, speaks to reporters at a lounge in Seoul, Monday. Courtesy of Binance

Binance's core strategy in Korea remains the acquisition of local cryptocurrency exchange GOPAX, CEO Richard Teng said Monday, highlighting enhanced compliance measures aimed at addressing regulatory concerns that have stalled the deal.

"For us to be deployed in Korea, we first need the relevant regulatory approval. Second, we need the relevant shareholder approval," Teng said during a press briefing in Seoul during his visit to Korea this week. "We need clarity for us to continue to invest. We are looking forward to that."

He declined to provide specific answers regarding the expected timeline for regulatory approval, the nature of discussions with authorities or whether Binance would exit the Korean market if the approval is ultimately denied.

The world's largest crypto exchange by trading volume has been trying to acquire GOPAX since 2023 to enter the Korean crypto market, but the deal has been delayed by regulators, effectively keeping out foreign investment.

At the time, Korean financial authorities cited concerns including violations of U.S. anti-money laundering laws, opaque financial structures and the criminal history of some executives.

However, over time, many of Binance's legal risks have been resolved, and the company has resumed normal operations in the U.S. Its former CEO, Changpeng Zhao, who had been a point of concern, stepped down, and in May the U.S. Securities and Exchange Commission dropped its lawsuit against Binance and Zhao.

Still, prospects for regulatory approval remain unclear in Korea.

Teng stressed that Binance has been investing heavily in compliance, calling it the exchange's "significant advantage."

The exchange now employs more than 1,400 people in compliance roles, accounting for 23 percent of its total workforce, according to Teng. He also noted that the company has transitioned from a CEO-led structure to a board-driven governance model.

"We are the most regulated compliant global exchange today. We have regulatory approval from 21 countries around the world, including in the Asia Pacific, Latin America and Europe," Teng said. "Last year alone, we received 64,000 requests from law enforcement agencies around the world (for cooperation)."

Teng also said he was pleased to see positive developments in Korea, including a recent motion by lawmakers to introduce the General Act on Digital Assets. He pointed to Binance's liquidity, backed by its 29 million users, as a key strength for its potential operation in Korea.

"As the largest crypto exchange in the world, we want to support Korea's ambition to become a crypto hub in the world," Teng said.