Gopax Being Required For Risk Review To Complete Deal With Binance

Key Points:

• South Korean financial regulators have asked the Korean exchange Gopax to conduct a risk assessment again.
• Currently, financial authorities are reviewing the VASP change report submitted by Binance when it acquired Gopax.
• The delay in reviewing the change report will further delay the repayment of funds to those users who had their funds tied up in GoFi.

According to Edaily, South Korean banking authorities have requested the Korean exchange Gopax do another risk assessment.

Financial regulators are now analyzing the virtual asset service provider (VASP) change report provided by Binance when it bought Gopax, and the evaluation findings are not anticipated until mid-May.

On April 23, the Financial Supervisory Agency ordered Jeonbuk Bank to undertake a risk assessment on the exchange, according to the financial sector and the virtual asset business. It receives real-name confirmation deposit and withdrawal accounts from Jeonbuk Bank.

Normally, risk assessments are performed once a year, but Gopax got it in August of last year, leaving 3 to 4 months. The abrupt risk assessment is intended to be represented in the change report review.

As Coincu reported, Binance has completed the final phase before acquiring Gopax, and Binance has already filed a declaration with the Korean financial authority.

The examination of Gopax’s change report is taking longer than planned. On March 6 of last month, the exchange filed a change report to the Financial Services Commission’s Financial Intelligence Unit (FIU) as the major shareholder shifted to Binance and there were changes in registered executives.

The FIU was supposed to notify the review outcome by the 19th, within 45 days of receiving the change report, but it has prolonged the review time by demanding document supplementation.

However, the delay in assessing the change report would further delay the recovery of monies to GoFi, the exchange’s crypto deposit service, and consumers.

Users of GoFi who have not gotten their monies back as a result of the delay in assessing the change report are on their own. Binance pledged to refund Gopax’s principle and interest in full when they signed the purchase deal.

Because only after the modification is implemented will Binance be able to completely pay for the purchase of Gopax and restore the 56.6 billion won (about $42.39 million) in user cash related to GoFi.

In response to the delay in reimbursing GoFi customers’ monies owing to reporting changes, a Gopax official said:

“Binance and Gopax are moving with user protection as their top priority, and the financial authorities see no reason to change their minds in the big picture. We are in a position to ask for the understanding of users to wait a little longer.”

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Harold

Coincu News