TL;DR:
- South Korea’s FSC is reviewing Hana Bank’s $668 million purchase of a 6.55% stake in Dunamu, the operator of Upbit exchange.
- The regulator is analyzing whether the operation, executed through Kakao Investment rather than directly, falls under banking-commerce separation rules.
- Major financial groups are beginning to seek a presence in the Korean crypto market.
South Korea’s financial regulator is reviewing Hana Bank’s planned acquisition of approximately 1 trillion won (around $668 million) for a 6.55% stake in Dunamu, the operating company behind the country’s largest cryptocurrency exchange, Upbit.
According to local outlet iNews24, citing an anonymous official from the Financial Services Commission (FSC), authorities are studying whether the operation —structured through the purchase of shares from Kakao Investment rather than directly from Dunamu— falls within the rules known as “banking-commerce separation.” The official clarified that Hana’s investment will be evaluated under the same standards as a direct stake in the exchange’s operator.
The deal was signed last Friday by the banking unit of Hana Financial Group, which would acquire approximately 2.2 million shares in Dunamu. The transaction would make it the fourth-largest shareholder of Upbit.
Why Is Hana Under Investigation?
The “banking-commerce separation” principle limits ownership ties between traditional financial institutions and non-financial companies. Virtual asset companies like Dunamu operate in a gray area within that framework, given that digital asset operators are not classified as conventional financial entities.
A senior FSC official cited on Monday by the Maeil Business Newspaper noted that the restrictions applicable to the crypto world under that principle are not codified in explicit legislation, but instead operate through supervisory policy and regulatory interpretation.
The Korean Crypto Market Attracts Financial Capital
In February, Mirae Asset agreed to acquire 92.06% of exchange Korbit through Mirae Asset Consulting, for around 133.5 billion won (approximately $93 million), avoiding doing so through its securities arm. Additionally, local media reported that OKX and Korea Investment & Securities are negotiating to each acquire stakes of around 20% in exchange Coinone through a new share issuance.
Major financial groups are seeking exposure to the Korean crypto market, and the existing regulatory framework still offers no clear answers about where banking ends and the crypto ecosystem begins.
