Upbit is a South Korean cryptocurrency exchange that was founded in 2017 and is operated by Dunamu, the highest value startup in the country. The regulators are giving pushbacks to Upbit for its dubious and disputed investment and authorities are issuing restrictions on its monopoly position in the market. The total asset of Dunamu is nearly 10 trillion KRW which is around $8.06 billion currently.
Upbit Is Facing Scrutiny After Its Investment Controversy
Upbit manages 80% of the trading volume of domestic nature and hence the majority of the regulators feel that both these organizations are showing their monopoly power in the market. The power they enjoy must be cut down very soon.
The regulators are thinking of curtailing their power by giving them the designation of a huge corporation which would limit their activities in the market. The big companies and firms of investment in South Korea are subjected to stringent rules and regulations on the amount and nature of the information they are sharing under the Capital Markets Act.
A source from Upbit stated recently that they have given up all the holdings of subsidiaries of Tiger and have still ordered their official site to delete all the content related to cryptocurrency. As per the source, the service was terminated for future misunderstanding and confusion.
Dunamu is somewhat between a company that deals with important financial investments and a huge corporation under the law of South Korea. Thus, they are legally allowed to advocate investments under the legislation of the Capital Markets Act.
However, as per the report of the Cultural Journal, an insider of the company made it clear that the contents of promotions are a loophole for the regulators. This portion must be amended and adjusted to better the situation. The standing of the company as a medium or small enterprise is likely to modify the future scenario.
