South Korean lawmakers amend law to regulate crypto companies

The Korea Fair Trade Commission (KFTC) is all set to enforce harder guidelines on Dunama– the moms and dad business of the nation’s biggest crypto exchange, Upbit– by categorizing it as a “big business.” The authority considers companies with more than 5 trillion won ($ 4.03 billion) properties based on a more stringent regulative analysis, needing them to “divulge details on significant intracompany negotiations, board choices, and investors.”

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  • Dunamu held 10.15 trillion won (US$ 8.19 billion) as its possessions in 2021, somewhat above the 10- trillion limit that excuses organizations from being classified as “business based on restrictions on shared financial investment.”
  • Besides being disallowed from carrying out shared financial investment, the giant will deal with other constraints on financial obligation warranties, cross-shareholding, and so on
  • With just 1.38 trillion won of properties under its management since 2020, Dunaum’s quick development in 2015 drew the attention of the Korean guard dogs.
  • The authorities bound businesses with over 5 trillion won (about US$ 4 billion) in possessions to divulge info on significant intracompany transactions, board choices, and investors under the Monopoly Regulation and Fair Trade Act.
  • According to sources obtained by the Korea Herald, the KFTC is vulnerable to controlling Dunamu as a “non-financial service” and thinking about Upbit’s consumer deposits as part of its properties. Under this scenario, Dunamu will expectedly deal with austere policies due to the enormous size of its handling properties.

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  • With Upbit accounting for 78% of the marketplace share in South Korea, Dunamu published earnings of 2.2 trillion won in 2021, placing the business as one of the most eye-catching crypto unicorns in the nation.
  • South Korea’s president-elect Yoon Suk-yeol has freely voiced assistance for the crypto market. In a public look throughout the project, the previous district attorney stated that those who produce revenues of less than $40,000 each year from crypto trading would be exempt from paying taxes.
  • It was viewed as the brand-new president’s friendly gesture towards the market as he had formerly pleaded to relieve guidelines on cryptocurrencies.