South Korean Exchange Faces New Regulatory Scrutiny

[waybesuricata]

The Korea Fair Trade Commission (KFTC) is considering bringing the operator of South Korea’s largest exchange, Upbit, under “large business” regulations.

The Korea Herald reported that Dunamu’s reclassification as a large business will likely bring Upbit under more stringent government regulations.

Dunamu owns and operates Upbit among other investment platforms. The operator came under review during KFTC’s annual assessment for businesses with total assets over 5 trillion won ($4.03 billion).

Additional regulations would include disclosing information on major intracompany dealings, board decisions and shareholders, along with disclosing conflict that could provide “unfair” benefits to related parties, the local report underlined.

Sources to the paper revealed that the KFTC can likely group Dunamu as a “non-financial business,” further stating customer deposits with Upbit as the firm’s own assets. Currently, the KFTC does not classify crypto companies and services firms as financial businesses.

The Monopoly Regulation and Fair Trade Act also defines conditions for large businesses to promote competition in markets. Currently, the top five exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax are dominating the crypto market.

Source: https://beincrypto.com/south-korea-exchange-faces-new-regulatory-scrutiny/