Regulatory Challenges for Dunamu: Examining the Monopoly on South Korea’s Crypto Scene

Unpacking the Monopoly: Dunamu and Upbit

Dunamu, the brains behind South Korea’s heavyweight crypto exchange Upbit, is feeling the heat from regulators. With assets surpassing 10 trillion KRW (roughly $8.06 billion) and a staggering 80% share of the domestic trading volume, Upbit isn’t just a player in the game—it’s basically the referee, the ball, and the entire stadium. Authorities are now raising eyebrows, viewing this dominance as a monopoly that could use a little reigning in.

Regulators on the Warpath

In a move that has more twists than a K-drama plot, regulators are contemplating designating Dunamu as a large corporation. This designation would slap some serious restrictions on its activities, effectively putting the brakes on its expansion plans faster than you can say “blockchain.” Large corporations in South Korea walk a regulatory tightrope and must adhere to rigorous rules under the Capital Markets Act, which includes restrictions on sharing investment information.

Triger Standoff: The Investment Loophole

Now, here’s where it gets juicy. Critics are eyeing Dunamu’s recent investment in a market tracking firm named Triger, where they held a 40% stake. Triger, which ventured into crypto-related investment recommendations last March, seemed to be what they call a