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South Korean regulator begins sanctions process against Dunamu: Report

Published

19 July 2026

Topic

regulatory

Sectors

Fintech

Geography

South Korea

Source

Read at lcx.com

Verified

Fusion42 · 19 July 2026 · Fusion42 review

South Korea's Financial Supervisory Service has begun formal sanctions proceedings against Dunamu (Upbit operator) following a $36 million November 2025 hack, citing delayed disclosure and potential violations of the Virtual Asset User Protection Act. Authorities plan to close regulatory gaps by adding explicit hacking sanctions and compensation provisions in the second phase of the Digital Asset Basic Act.

This Wire brief sits within Fusion42's coverage of Fintech, and 3 sources have reported it between 19 Jul 2026 and 20 Jul 2026.

◆ The Wire takeaway

If you run a crypto exchange or custody platform in South Korea, regulators now treat disclosure timing as a violation separate from the hack itself—and they're writing sanctions into law. You have weeks to audit your incident response playbook before phase two of the Digital Asset Basic Act lands.

Coverage

3 sources · first reported 19 Jul 2026 · latest 20 Jul 2026

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Topics

Fintechcrypto-complianceexchange-regulationsouth-koreadisclosure-requirementssandbox-risk