Dunamu, operator of Upbit crypto exchange, has become South Korea’s first virtual asset exchange operator designated to use the government’s shared administrative information system, allowing it to access eligible government-held data for customer verification.
According to a local news report, South Korea’s Ministry of the Interior and Safety designated Dunamu as a joint administrative information-use institution this month. The designation followed an on-site inspection conducted in May and a subsequent review of whether the company met the required conditions, Dunamu said on August 26.
The approval will allow Upbit to use the government-backed system during its know-your-customer, or KYC, procedures. Instead of requiring customers to obtain and submit documents already held by government agencies, eligible information can be verified through the administrative information network.
Upbit to use government data for KYC
South Korea has introduced the administrative information joint-use service to reduce paperwork for people using public and other approved services. Dunamu plans to apply the system specifically to KYC operations at Upbit. The exchange indicated that it expects the move to reduce the number of supporting documents users must provide and make parts of the verification process more convenient and efficient.
The designation will allow Dunamu to use the government-backed administrative information system for eligible customer-verification procedures at Upbit. Instead, it gives the exchange another mechanism for verifying information required as part of customer identification.
Dunamu is now completing preparations to introduce the service, according to the company.
Approval follows regulatory scrutiny
The government designation comes as Dunamu continues to face regulatory attention over Upbit’s compliance and security controls.
South Korea’s Financial Intelligence Unit (FIU) raised concerns in 2025 over alleged shortcomings involving Upbit’s KYC and anti-money laundering procedures. The exchange subsequently faced a procedural sanctions process, with regulators requiring the company to submit its response before determining any final action.
More recently, South Korean regulators began reviewing Upbit’s handling of a major wallet breach reported in November 2025. The Financial Supervisory Service launched a formal sanctions process in July to examine whether Dunamu met its responsibilities under the Virtual Asset User Protection Act.
Upbit reimbursed affected customers and rebuilt parts of its wallet infrastructure following the incident, while the regulatory review continued.
Dunamu expands public-sector role
The latest designation adds to Dunamu’s growing involvement with South Korean public-sector institutions.
In July, the company was selected as the preferred bidder for a National Police Agency contract to provide custody and management services for virtual assets seized during criminal investigations, placing ahead of K DAC and Hecto Wallet One following technical and price evaluations.
Meanwhile, Dunamu and Naver Financial are moving forward with their planned share exchange, which would make Dunamu a wholly owned subsidiary of Naver Financial.
The transaction has been postponed twice, with the latest expected completion date moved to December 31, and remains subject to regulatory approvals, including review by the Fair Trade Commission and approvals related to major shareholder changes and financial transaction reporting requirements.
The companies also plan to establish an IPO committee within a year of completing the share swap, while Naver will retain voting control and Naver Financial will remain its subsidiary.
For now, the government’s administrative-information designation gives Upbit a new tool for customer verification as South Korea continues to tighten oversight of the digital-asset industry. Dunamu is expected to complete the technical and operational preparations needed to begin using the system for KYC checks.
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