South Korea's Ministry of the Interior and Safety has designated Dunamu as an eligible institution to use the government's administrative information system for customer verification. According to reports from Yonhap News Agency, this approval makes Dunamu the first Korean crypto exchange operator to gain access to this public information infrastructure. The designation follows an on-site inspection conducted by the Ministry in May and a comprehensive review of whether the company met required conditions.
The administrative information joint-use service allows Dunamu to check information held by government agencies through a government network rather than requiring users to submit separate documents. As reported by Yonhap News Agency, the company plans to apply this service to Upbit's know-your-customer procedures, expecting to reduce document submissions from users while making the verification process faster and more accurate. The system will primarily affect parts of the KYC process that depend on information available through government records.
This approval comes after Upbit faced regulatory scrutiny over its customer verification controls. According to reports from crypto.news, in January 2025, South Korea's Financial Intelligence Unit raised concerns over alleged failures involving KYC and anti-money laundering requirements. At that time, the exchange received a procedural sanctions notice and was required to submit its response before regulators determined final action. The exchange's virtual asset service provider license renewal had also remained under review during the investigation.
Recent regulatory attention on Dunamu has extended beyond KYC compliance. In July, South Korea's Financial Supervisory Service began formal sanctions proceedings over a major Upbit wallet breach reported in November 2025. The regulator was examining whether the exchange met its responsibilities under the Virtual Asset User Protection Act following the incident, with Upbit reimbursing affected customers and rebuilding parts of its wallet system. Additionally, Dunamu was selected by South Korea's National Police Agency in July as the preferred bidder for a one-year contract to store and manage virtual assets seized during criminal investigations.
Outside compliance matters, Dunamu remains involved in a planned corporate transaction with Naver Financial that continues to await regulatory approvals. The companies have postponed completion of their planned share exchange twice, with the latest timetable moving the expected closing date to December 31. Under the transaction, Dunamu would become a wholly owned subsidiary of Naver Financial, with the exchange ratio maintained at 2.5422618 Naver Financial shares for each Dunamu share. The deal requires scrutiny from South Korea's Fair Trade Commission and approval under the Credit Information Act, with completion dependent on several regulatory processes.
