South Korea's Financial Services Commission (FSC) is reviewing Hana Bank's $668 million stake in Dunamu, the operator of crypto exchange Upbit. The move tests the country's banking-commerce separation rules, which limit how much a bank can own in a company linked to digital assets.
The rule at issue
South Korea's banking-commerce separation law is meant to keep banks from mixing too closely with industrial or commercial businesses. Crypto firms fall under that umbrella. The rule caps a bank's ownership in such a company at a certain threshold — though the exact cap isn't part of this review. Hana Bank's stake, worth about $668 million, appears to push past that line.
The FSC hasn't said whether it suspects a violation. It's reviewing the deal as part of standard oversight. But the size of the stake — and Dunamu's central role in South Korea's crypto market — makes this more than a routine check.
Hana Bank took the stake in Dunamu during the last bull run. The investment was seen as a bet on crypto's growth. But regulators have tightened rules since then. The timing of the review isn't great for Hana Bank, which has already taken heat from lawmakers over its exposure to the volatile sector. A finding that the stake violates separation rules could force the bank to sell down its position — or restructure the deal.
For Dunamu, the review adds uncertainty. The exchange has been under regulatory scrutiny before, but this is the first time a major bank's ownership is being questioned. Upbit commands a huge share of domestic trading volume, so any forced changes could ripple through the market.
What happens next
The FSC hasn't set a deadline for its review. Hana Bank has said it will cooperate with the regulator. The bank argues the investment complies with existing rules, but it hasn't detailed its legal reasoning publicly.
The outcome could set a precedent for other banks holding stakes in crypto-related businesses. Several South Korean lenders have dabbled in the space. A strict ruling might slow that trend. For now, everyone is waiting on the FSC's next move.
