South Korea’s police have reportedly summoned executives from the most important native crypto exchanges for questioning relating to allegations of favor-seeking and favoritism from a now-independent lawmaker.
Dunamu, Bithumb Executives Summoned By Police
On Wednesday, the Seoul Metropolitan Police Company’s Public Crimes Investigation Unit known as former Dunamu CEO Lee Seok-woo and Bithumb officers as witnesses within the investigation of allegations in opposition to unbiased lawmaker Kim Byung-kee.
In keeping with native reviews, police reportedly questioned the previous CEO of Dunamu, the corporate that operates South Korea’s largest crypto change, Upbit, about whether or not Kim requested employment for his second son throughout a dinner assembly in November 2024.
Kim’s former aides have claimed that the previous Democratic Occasion’s flooring chief had proven vital curiosity in crypto-related corporations corresponding to Dunamu and Bithumb, the second-largest crypto change within the nation, for his son’s employment.
Nevertheless, after failing to safe a spot on the native trade chief, the lawmaker allegedly organized for his son to work at Bithumb, the place he labored for six months, beginning in January 2025. A former aide advised reporters in December that Kim had “initially tried to get him employed at ‘some place else,’ however when that fell by means of, he received him employed at Bithumb.”
The reviews alleged that Kim had instructed his aides to “assault Bithumb’s opponents” after the assembly with former CEO Lee and a job opening at Bithumb in November. He seemingly affirmed that “Dunamu’s monopoly is an entire downside.”
The lawmaker has been accused of searching for to favor the crypto change his son labored for by repeatedly questioning Dunamu “in a way supposed to assault it” throughout Political Affairs Committee conferences.
Kim advised then-Monetary Companies Fee (FSC) Chairman Kim Byung-hwan that “the largest downside with Korea’s digital asset exchanges is the monopoly of a selected change,” the reviews famous. He additionally identified a Monetary Intelligence Unit (FIU) investigation that recognized practically 700,000 circumstances during which Upbit didn’t observe the right Know-Your-Consumer (KYC) course of.
The Seoul Metropolitan Police additionally summoned a Bithumb government on Tuesday and one other Bithumb official on Wednesday for questions relating to the allegations in opposition to the lawmaker.
FSC Explores Crypto Trade Possession Cap
The investigation comes because the FSC explores imposing a cap on crypto change possession. As reported by Bitcoinist, the monetary authority’s chairman, Lee Eog-weon, just lately revealed that the company is reviewing a proposal to restrict main shareholders’ stakes in exchanges at round 15%-20%.
Lee pressured the necessity to restrict the possession stakes of controlling shareholders in crypto exchanges, highlighting that present rules primarily deal with anti-money laundering and investor safety.
Nonetheless, the proposal has confronted backlash from trade gamers and the ruling Democratic Occasion of Korea (DPK). In keeping with native information shops, a joint council representing home crypto exchanges, together with Upbit, Bithumb, and Coinone, has opposed the cap.
Exchanges warned that the proposed restrict might hinder the event of South Korea’s crypto trade. It’s price noting that if the legislation is enacted, main gamers like Dunamu’s chairman, Track Chi-hyung, and Coinone’s founder, Cha Myung-hoo, can be pressured to promote a big portion of their holdings to adjust to the possession restrict.
In the meantime, members of the Democratic Occasion additionally expressed their issues, affirming that comparable caps are unusual and will make South Korea’s framework inconsistent with world regulatory tendencies and uninviting to buyers.
The change possession cap proposal can be included within the upcoming Digital Asset Fundamental Act, often known as the Second Section of the Digital Asset Consumer Safety Act, which is able to function a complete framework for all the crypto trade.
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