News linked to both this project and an event.
Odaily News: South Korean police recently raided cryptocurrency exchange Bithumb to investigate allegations that independent lawmaker Kim Byung-gi used his influence to secure a job for his son. According to reports, Kim’s son joined Bithumb in January 2025 and worked there for about six months. Police are investigating whether external pressure or preferential treatment was involved in the hiring process. Additionally, the case has also implicated Dunamu, the operator of South Korea’s largest crypto exchange Upbit, with the investigation scope expanding from simple hiring issues to potential abuse of power and conflicts of interest.Investigators noted that during his tenure on the National Assembly's Political Affairs Committee, Kim Byung-gi raised multiple inquiries against Dunamu during committee meetings, sparking external speculation that he may have been seeking benefits for the company where his son was employed.It is understood that police have previously questioned executives from several cryptocurrency firms and have conducted search and seizure operations at Bithumb’s headquarters and Bithumb Financial Tower. Kim Byung-gi himself is under investigation on 13 charges, including allegations related to job placements, bribery for nominations, and requests concerning university transfers. He has stated that he believes he will ultimately be able to prove his innocence.Notably, Bithumb has been facing sustained regulatory pressure recently. In March this year, South Korea’s financial regulator fined Bithumb approximately $24.5 million for violations related to KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, and issued a six-month partial business suspension order. However, the Seoul court temporarily suspended the penalty in late April, and the relevant legal proceedings are still ongoing. (Cointelegraph)
the Financial Services Commission (FSC) of South Korea is reviewing whether Hana Bank's acquisition of shares in Dunamu violates the regulatory rule of "separation between finance and virtual assets."The Virtual Asset Department of the FSC stated that Hana Bank indirectly holds equity in Dunamu by acquiring shares in Kakao Investment. This essentially constitutes an investment in a virtual asset trading platform and will therefore be reviewed under the same regulatory standards.According to reports, since 2017, the South Korean government has restricted financial institutions from holding or purchasing virtual assets or making equity investments in related companies through administrative guidance. If ultimately found to be in violation, Hana Bank's related transaction may not proceed.Additionally, Mirae Asset Consulting is currently pushing forward with the acquisition of management rights for Kobit, while Korea Investment & Securities remains cautious about related businesses. Hana Bank had previously announced plans to acquire approximately 6.55% of Dunamu's shares, but did not consult with regulators beforehand. (iNews24)
According to Tech in Asia, Naver plans to pursue an IPO for its subsidiary Naver Financial within five years after completing a share swap transaction with Dunamu—the operator of South Korea’s Upbit cryptocurrency exchange. Per the shareholders’ agreement signed by both parties, an IPO committee must be established within one year following the completion of the transaction; if the IPO is not completed within five years, the deadline may be extended up to seven years. The specific timing and structure of the IPO have yet to be determined and will depend on market conditions and regulatory developments. Notably, South Korea’s proposed Digital Asset Basic Act could impact the transaction structure, and regulators are also discussing a rule that would cap the maximum shareholding ratio for major shareholders of cryptocurrency exchanges at 20%. Meanwhile, Dunamu’s operating profit for 2025 declined 26.7% year-on-year to KRW 869.3 billion (approximately USD 591 million), primarily due to a slowdown in cryptocurrency trading volume.
Circle CEO Jeremy Allaire stated that Circle has expanded its collaboration with Dunamu—the operator of Upbit—to support the compliant adoption of digital assets, and broadened its partnership with Bithumb to strengthen stablecoin infrastructure and raise market awareness of stablecoins. Allaire noted that South Korea is rapidly advancing regulation for stablecoins and digital assets, and that local cryptocurrency adoption rates are high. During his time in Seoul, he also met with representatives from KakaoGroup, Coinone, Hashed, Shinhan Bank, KB Financial Group, and Woori Bank.
According to News1, Circle, the issuer of the stablecoin USDC, has signed a comprehensive Memorandum of Understanding (MOU) with Dunamu, the operator of Upbit—the largest virtual asset exchange in South Korea. The two parties will jointly advance digital asset education initiatives—including stablecoins—to enhance market participants’ access to information and bolster the credibility of South Korea’s digital asset ecosystem. Oh Kyung-seok, Dunamu’s representative, stated, “Collaborating with Circle—experienced in compliant operations—is highly significant.” Jeremy Allaire, Circle’s representative, emphasized, “South Korea is an exceptionally important market for digital asset innovation.”
According to DigitalAsset, a South Korean court ruled in favor of Dunamu—the operator of Upbit—in an administrative lawsuit it filed against the Financial Intelligence Unit (FIU), overturning the FIU’s administrative penalty ordering a three-month partial suspension of Dunamu’s operations. The court found that, in the absence of specific implementation guidelines from regulatory authorities, Dunamu had taken certain measures—including requesting written commitments from customers and conducting internal monitoring. Although the court acknowledged that whether these measures were sufficient to prevent transactions with unregistered operators remained debatable, it held that Dunamu had fulfilled its reasonable obligations given the lack of clear regulatory guidance. Previously, the FIU had imposed the three-month partial business suspension on Upbit for inadequacies in its controls over transactions with unregistered operators.