South Korea FSC Reviews Hana Bank’s $668M Dunamu Stake Plan

South Korea’s Financial Services Commission (FSC) is reportedly reviewing Hana Bank’s $668 million deal to acquire a 6.55% stake in Dunamu, the operator behind the country’s leading cryptocurrency exchange, Upbit. The transaction, which would make Hana Bank the fourth-largest shareholder in Dunamu, raises questions over regulatory compliance with South Korea’s “banking-commerce separation” rules.

According to local outlet iNews24, the FSC is assessing whether Hana’s indirect purchase—via Kakao Investment rather than directly from Dunamu—violates policies that limit financial institutions’ exposure to non-financial businesses, including crypto firms. An FSC official indicated that the deal will be evaluated as if it were a direct stake in the exchange.

Under the agreement, Hana Financial Group’s banking unit would acquire 2.2 million shares from Kakao Investment for 1 trillion won ($668 million). This move comes amidst broader scrutiny of South Korea’s crypto sector, which has operated in a regulatory gray area under the principle of banking-commerce separation.

Regulatory Context Fuels Uncertainty

South Korea’s regulatory framework for crypto has been tightening since the FSC finalized new guidelines in January 2026. These rules ended a nine-year ban on corporate crypto investments but capped them at 5% of a company’s equity capital. Virtual asset operators like Dunamu, however, remain outside traditional banking definitions, creating ambiguity in regulatory oversight.

While explicit legal restrictions on bank ownership of crypto-related businesses don’t exist, the FSC relies on supervisory policy to enforce compliance. The pending Digital Asset Basic Act, which is expected to be finalized later this year, could solidify these policies into law. It aims to introduce structured oversight for cryptocurrencies and stablecoins, aligning with South Korea’s broader push to formalize its crypto market.

Hana Bank’s deal isn’t the only high-profile move in the sector. Earlier this year, Mirae Asset acquired a 92% stake in the local exchange Korbit for $93 million, and OKX is reportedly in talks to take a 20% stake in Coinone. These transactions highlight increasing interest from traditional financial institutions in South Korea’s crypto market, even as regulatory challenges persist.

Market Implications

The FSC’s scrutiny of Hana Bank’s investment could set a precedent for how traditional banks engage with crypto firms in South Korea. While banks are barred from directly holding cryptocurrencies, many, including Hana, provide custody services and real-name account systems to exchanges under strict regulatory oversight.

Traders and investors should keep an eye on developments around the Digital Asset Basic Act and the FSC’s upcoming tokenized securities regulations, set to be released in July 2026. These measures could reshape market dynamics by introducing new compliance requirements and potentially restricting institutional participation in crypto.

With Bitcoin trading at $76,784 as of May 18, 2026, down 2.08% in the last 24 hours, regulatory clarity in South Korea could influence regional trading activity and institutional adoption. The Hana-Dunamu case underscores both the opportunities and risks for banks venturing into the crypto space, as they navigate evolving rules and market volatility.

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