Dunamu Granted Access to South Korea's Government Data for Upbit KYC

Dunamu cleared to use South Korea’s government data for Upbit KYC — a first for a domestic crypto exchange Dunamu, operator of South Korea’s largest crypto exchange Upbit, has become the first domestic virtual-asset exchange designated to access the government’s shared administrative information system for customer verification. Yonhap News Agency reported on Aug. 26 that the Ministry of the Interior and Safety granted the approval after an on-site inspection in May and a follow-up eligibility review. What this means for Upbit users - Dunamu can now query administrative records held by South Korean government agencies through a secure government network instead of repeatedly asking users to submit the same documents. - The change is expected to reduce the paperwork burden for customers and make Upbit’s KYC checks faster and more accurate. - The designation does not remove Upbit’s KYC or AML obligations; it provides an additional, official data source for verifying identity and administrative records. How the system works South Korea’s administrative information joint-use service was created to cut red tape by letting approved institutions check data government agencies already hold. For Dunamu, that means parts of the onboarding and identity-verification workflow that rely on government records can be handled directly through the system rather than via user-supplied documents. Regulatory backdrop The approval comes amid continued regulatory scrutiny of Dunamu and Upbit: - In January 2025 South Korea’s Financial Intelligence Unit raised concerns about Upbit’s KYC and anti-money laundering controls and issued a procedural sanctions notice; the exchange was required to respond while its VASP license renewal was under review. - In July (year in report), the Financial Supervisory Service opened a formal sanctions process over a major Upbit wallet breach first reported in November 2025. Upbit reimbursed affected customers and rebuilt parts of its wallet system while regulators examined whether the exchange met obligations under the Virtual Asset User Protection Act. The case also highlighted gaps in South Korean law around penalties specific to hacking incidents. Other public-sector and corporate developments - In July Dunamu was named preferred bidder to provide crypto custody services for the National Police Agency under a one-year contract to manage virtual assets seized during criminal investigations. The vendor selection beat K DAC and Hecto Wallet One after technical and price evaluations; some industry observers questioned whether procurement rules favored large exchanges. - Dunamu is also pursuing a planned share exchange with Naver Financial that would make Dunamu a wholly owned subsidiary of Naver Financial. The companies have delayed closing twice and have pushed the expected closing date to Dec. 31. The exchange ratio in a July filing remained 2.5422618 Naver Financial shares for each Dunamu share, but the deal still requires approvals from the Fair Trade Commission, clearance tied to major shareholder changes under the Credit Information Act, and other regulatory notifications. In April the Financial Supervisory Service ordered Dunamu to correct parts of its disclosure on the transaction for omissions or inaccuracies. What’s next Dunamu said it is finishing the preparations needed to begin using the administrative information service for Upbit’s KYC checks. If implemented smoothly, the move could set a precedent for other exchanges seeking to integrate formal government data into onboarding workflows, while regulators continue to press exchanges on AML controls, security, and corporate governance.