South Korean financial regulators initiate sanctions proceedings against Upbit operator Dunamu

PANews July 19 news: According to Yonhap News Agency, South Korea’s financial regulators have sent an investigation report to Dunamu, Upbit’s operator, and initiated the sanctioning process. Previously, the company suffered a hacking incident worth 44.5 billion won. Since the incident occurred, the Financial Supervisory Service (FSS) has been investigating whether there was any violation of the Virtual Asset User Protection Act, but since there are currently no direct penalty provisions specifically for hacking attacks or computer system failures, whether it will result in a severe disciplinary action remains unclear. The Financial Supervisory Service plans, after the company provides an explanation, to notify the company of the sanction opinion letter in advance, which includes the sanction level. Subsequently, the final sanction measures will be determined by resolutions passed by the Sanctions Review Committee, the Financial Services Commission, and the Securities and Futures Commission.