South Korea's FSC Reviews Hana Bank's Purchase of Dunamu Shares for Regulatory Violations

ChainCatcher report, according to iNews24, the Financial Services Commission (FSC) of South Korea is reviewing whether Hana Bank’s acquisition of Dunamu shares violates the regulatory principle of “separation of finance and virtual assets.” The FSC’s Virtual Assets Division stated that Hana Bank’s indirect ownership of Dunamu shares through its acquisition of Kakao Investment shares constitutes de facto investment in a virtual asset exchange and will be evaluated under the same standard. Since 2017, the South Korean government has prohibited financial institutions from holding, purchasing, or making equity investments in virtual assets through administrative guidance. If this transaction is found to be in violation, Hana Bank may be unable to complete the deal. Future Asset Consulting is advancing its acquisition of Kobit’s operating rights, while Korea Investment Securities is taking a cautious approach. Hana Bank previously announced its intention to acquire 6.55% of Dunamu’s shares but did not consult with regulators in advance. Currently, the “separation of finance and virtual assets” rule has not been codified into law, and it remains uncertain whether related provisions will be included in the Digital Assets Act; legislative discussions could proceed as early as after the National Assembly reconvenes in September.