Dunamu The Owners Of Upbit May Have His Dominance Curtailed As A Result Of A Financial Dispute

The company’s status as a small or medium-sized corporation (SME) is expected to change in the near future, according to reports. The Fair Trade Commission (FTC) was seriously considering designating Dunamu as a large corporation, according to local news source NoCut News, on April 20.

Upbit controls an overwhelming 80 percent of the domestic trading activity, with Dunamu’s total assets valued at over 10 trillion KRW ($8.06 billion). As a result, regulators perceive Dunamu, and by extension Upbit, as a monopoly with excessive power that needs to be limited. Regulators might stifle its expansion by classifying it as a major business, limiting its market operations.

To avoid any unnecessary misunderstandings, we have requested that the service be terminated. Under Korean law, Dunamu straddles the border between a huge corporation and a financial investment firm.

Local officials are closely watching the Upbit operator as its overall assets grow and a subsidiary issues questionable financial advice. Dunamu, the operator of South Korean crypto exchange Upbit, is facing a regulatory backlash as a result of a contentious investment, and authorities are moving to impose limits to suffocate its dominant position.

10 Trillion KRW ($8.06 Billion)

Upbit controls an overwhelming 80 percent of the domestic trading activity, with Dunamu’s total assets valued at over 10 trillion KRW ($8.06 billion). As a result, regulators perceive Dunamu, and by extension Upbit, as a monopoly with excessive power that needs to be limited. Regulators might stifle its expansion by classifying it as a major business, limiting its market operations.

The Capital Markets Act in South Korea places severe restrictions on what information large enterprises and investment firms can share about their investments. It is illegal for corporations and their subsidiaries to promote investments, particularly ones that they own or are affiliated with.

Dunamu has been chastised for holding a 40% ownership in market tracking startup Trigger, which began selling crypto-related investing advice in March, allegedly exploiting a loophole in the country’s Capital Markets Act. Since then, Dunamu has sold all of its stock in the company.

On April 19, a spokesman from Upbit told local news outlet Culture Journal that the company had sold all of its Trigger subsidiary assets, but that it had instructed the site to remove its crypto-related content. According to the representative,

Industry Insider Told Culture Journal

To avoid any unnecessary misunderstandings, we have requested that the service be terminated. Under Korean law, Dunamu straddles the border between a huge corporation and a financial investment firm. As a result, under the Capital Markets Act, the firm is technically permitted to advocate investments. However, an industry insider told Culture Journal that promotional content is a regulatory gap that should be addressed to fix the situation.

The company’s status as a small or medium-sized corporation (SME) is expected to change in the near future, according to reports. The Fair Trade Commission (FTC) was seriously considering designating Dunamu as a large corporation, according to local news source NoCut News, on April 20. This was partly due to its recent activities and its sheer size.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing