South Korean regulator begins sanctions process against Dunamu: Report

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. 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.