Gopax, 5th KRW Virtual Exchange Approval... PayProtocol "Business Structure Change" (Comprehensive)

[Asia Economy Reporter Ji Yeon-jin] Following the '4 major coin exchanges,' Gopax has received approval from financial authorities as a virtual asset KRW market operator.

The Financial Intelligence Unit (FIU) announced on the 21st that it has accepted the change report from the virtual asset exchange Gopax. Previously, Gopax had registered as a coin market operator by the deadline of September 24 last year for submitting the report under the Act on Reporting and Using Specified Financial Transaction Information (Special Financial Transactions Act), as it had not secured a real-name verified deposit and withdrawal account.

However, in February this year, Gopax obtained a real-name verified deposit and withdrawal account from Jeonbuk Bank and submitted a report to FIU on the 7th of last month to change its operator status to a KRW market. FIU explained that after considering on-site inspections, document reviews by the Financial Supervisory Service, and discussions by the Virtual Asset Business Operator Reporting Deliberation Committee, it decided to accept Gopax's change report. Gopax plans to start KRW market operations after system restructuring and preparations.

FIU also accepted the virtual asset custody operator report from Pay Protocol. Pay Protocol operates its business structure where users purchase goods at affiliated stores using its self-issued Paycoin, with Danal and Danal Fintech handling payment and distribution. Pay Protocol is a 100% subsidiary of the payment service company Danal.

According to Danal Fintech, the number of Paycoin subscribers has reached 2.5 million. FIU judged that not only Pay Protocol, which submitted the report, but also Danal, Danal Fintech, and others distributing Paycoin need to report as they also buy and sell virtual assets.

FIU explained, "To continue payment and settlement operations under the current business structure, affiliates must also report as virtual asset business operators, and failure to report may result in criminal penalties or sanctions."

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In materials distributed on the same day, Pay Protocol stated, "We will change the business structure so that Danal and Danal Fintech do not handle virtual assets but provide payment services, report this to FIU, and closely cooperate with the authorities." If Pay Protocol intends to buy and sell virtual assets, it must submit a change report to become a virtual asset trading operator.

Due to FIU's additional review requirements, the Paycoin business faces uncertainty for the time being. An FIU official said, "Paycoin payments will not be immediately suspended due to unreported operations, but if Pay Protocol fails to pass the change report review, in the worst case, Paycoin payments could be suspended." Since the change report must be submitted within 30 days, the official said a conclusion on whether operations will continue is expected within the first half of the year.

With the acceptance of Pay Protocol's report, the review of virtual asset business operators who submitted reports to FIU in September last year has been completed. Out of 42, 34 received certificates of acceptance as virtual asset business operators, while the rest withdrew midway.

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