Upbit owner Dunamu could see 'monopoly' curbed after investment controversy

The relation of South Korean crypto speech Upbit, Dunamu, is facing pushback from regulators owed to a arguable concern portion authorities determination to contented restrictions to stifle its monopolistic position.

Dunamu’s full assets are valued astatine implicit over 10 trillion KRW ($8.06 billion) and Upbit controls an overwhelming 80% of the home trading volume. As a result, regulators spot Dunamu and by hold Upbit, arsenic a monopoly with excessively overmuch powerfulness that should beryllium curtailed.

Regulators could forestall its maturation by designating it a ample corp which would restrict its marketplace activities.

Large corporations and concern firms successful South Korea are taxable to strict rules connected what accusation they tin stock regarding investments nether the Capital Markets Act. Corporations and their subsidiaries are prohibited from promoting investments, particularly those they ain oregon are related to.

Dunamu has been criticized for taking vantage of an evident loophole successful the country’s Capital Markets Act by holding a 40% involvement successful marketplace tracking steadfast Triger which started offering crypto-related concern recommendations successful March. Dunamu has since dumped its shares successful the company.

A typical from Upbit told section quality outlet Culture Journal connected April 19 that it had dropped each of its subsidiary holdings of Triger, but has inactive asked the tract to instrumentality down its crypto-related content. The rep stated:

“We person requested the termination of the work to forestall unnecessary misunderstanding."

Dunamu straddles the enactment betwixt a ample corp and a fiscal concern steadfast nether Korean law. Therefore, the steadfast is technically allowed to beforehand investments nether the Capital Markets Act. However, Culture Journal reported that an manufacture insider pointed to specified promotional contented arsenic a regulatory loophole which “should beryllium revised to amended the situation.”

Related: Why NFT adoption is truthful precocious successful South Korea

The firm’s lasting arsenic a tiny oregon medium-sized endeavor (SME) is reportedly apt to alteration successful the adjacent future. Local quality root NoCut News reported connected April 20 that the Fair Trade Commission (FTC) was earnestly considering designating Dunamu arsenic a ample corp partially arsenic a effect of its caller activities and for its sheer size.