According to the Korea Herald, Dunamu’s reclassification as a large firm could likely subject Upbit to more strict government rules.
Dunamu is the owner and operator of Upbit, as well as several other investment platforms. During the KFTC’s yearly evaluation of firms with total assets of over 5 trillion won ($4.03 billion), the operator was scrutinised.
According to the local source, additional regulations would require the disclosure of information on key intercompany dealings, board decisions, and shareholders, as well as the disclosure of conflicts that could provide “unfair” benefits to connected parties.
According to the paper’s sources, the KFTC can likely classify Dunamu as a “non-financial business,” with client deposits with Upbit being treated as the company’s own assets. The KFTC has not currently classified crypto corporations and services firms as financial businesses by the KFTC.
The Monopoly Regulation and Fair Trade Act also establishes requirements for large businesses in order to promote market competition. The crypto industry is now dominated by the top five exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax.
Introduction of AML safeguards
South Korea has been making regulatory adjustments to establish anti-money laundering and counter-terrorist financing (AML/CFT) safeguards in the crypto sector under the Moon Jae-in administration.
As a result of the reorganisation, Upbit gained a monopolistic edge. Despite rival exchanges getting regulatory certifications after September 2021, Upbit led the market in trading volumes. According to reports, the Korea Federation of Banks (KFB) is requesting that South Korea’s incoming presidential administration approve local banks that service cryptocurrencies.
Non-crypto companies are also making inroads into the cryptocurrency market. Tmon, an e-commerce platform, and Ananti, a luxury hotel and resort brand, are increasing their personnel in the virtual currency industry.
Read more: South Korean ministry backs President Yoon Suk- yeol’s pledge to boost NFT ecosystem
