South Korean regulators review Hana Bank's acquisition of Dunamu shares

South Korean financial regulators are reviewing Hana Bank's plan to acquire a 6.55% stake in Dunamu, the operator of the country's largest cryptocurrency exchange, Upbit, for $668 million. Under the deal, the bank intends to purchase the shares not directly, but from Kakao Investment. This is reported by Cointelegraph.com reports .

Officials from the Financial Services Commission (FSC) stated that the investment will be evaluated for compliance with rules separating traditional banking and commercial activities. Although crypto-asset operators are not classified as traditional financial institutions, regulators are examining the deal within the scope of restrictions on bank ownership of non-banking businesses.

The banking division of Hana Financial Group had agreed to purchase approximately 2.2 million Dunamu shares for 1 trillion KRW (approximately $668 million). If approved, Hana Bank will become the fourth-largest shareholder of the Upbit exchange.

In South Korea, banking activities related to crypto-assets are not clearly defined by legislation and are primarily regulated based on supervisory policies and interpretations by regulators. Currently, the government is working on a Digital Asset Bill to create a legal framework for cryptocurrencies, stablecoins, and virtual asset providers.