South Korean regulators are reviewing Hana Bank’s plan to buy a 6.55% stake in crypto exchange operator Dunamu. The Financial Services Commission (FSC) said it is checking whether the deal breaks existing rules that separate banks from virtual asset businesses.
The review comes as authorities try to manage growing pressure from banks looking to expand into crypto-related investments.
Hana Bank will pay approximately 1 trillion won (~$670 million) to acquire the stake, purchasing the shares directly from Kakao Investment; the existing shareholder selling down its holding. The transaction, unanimously approved by Hana’s board on May 14, 2026, was confirmed in a regulatory filing on May 15 and is scheduled to close on June 15. It is the largest-ever investment by a South Korean bank into a virtual asset operator. If completed, the deal would make Hana Bank Dunamu’s fourth-largest shareholder, behind only Dunamu’s founders and Kakao Investment’s remaining holdings.
The move places traditional banking activity directly on the shareholder register of South Korea’s largest crypto exchange by trading volume. Regulators now face a key question on how far banks can go in crypto exposure under current restrictions.
Regulators examine finance-crypto separation rules
An official from the Financial Services Commission’s Virtual Assets Division said regulators are reviewing the Hana Bank deal under South Korea’s longstanding banking-commerce separation principle: the rule limiting how closely banks can be tied to non-financial commercial businesses. Because Hana is taking a direct equity position in a crypto exchange operator, regulators are examining whether that exposure is consistent with rules that have historically discouraged banks from holding stakes in virtual asset businesses.
South Korea introduced restrictions in 2017 to limit financial firms from holding or trading virtual assets. Authorities rolled out the rules after a surge in speculative crypto trading across local markets. Besides banning direct participation, regulators also discouraged equity investments linked to crypto exchanges.
The rules remain in the form of administrative guidance rather than formal law. However, officials continue discussions on whether to turn them into binding legislation in the upcoming digital asset reforms. A full review may not begin until the National Assembly returns for its regular session in September.
The regulatory picture is more nuanced than a simple “banks getting too close to crypto” framing suggests. South Korean regulators have separately been pressuring crypto exchanges to reduce major-shareholder concentration to improve financial stability and corporate accountability, with authorities reportedly weighing a 20% cap on major shareholder stakes in crypto exchanges. In that light, Hana acquiring a 6.55% minority stake from Kakao Investment partly serves the goal of diluting concentrated ownership, even as it raises separate questions about bank exposure to crypto.
Hana Bank’s approach stands out compared to other financial groups. Mirae Asset Group has pursued crypto exposure through non-financial affiliates instead of brokerage arms. Additionally, Korea Investment & Securities is taking a cautious approach as it reviews potential investments linked to Coinone and OKX.
Dunamu expands despite regulatory pressure
The review comes as Dunamu faces separate legal pressure from South Korea’s Financial Intelligence Unit. The FIU recently appealed a court ruling that overturned a three-month partial suspension on the Upbit operator. Authorities argue that Dunamu failed to meet compliance standards for transaction monitoring.
However, the Seoul Administrative Court ruled in April that regulators did not clearly define rules for smaller transfers. The court sided with Dunamu and overturned the suspension.
Despite ongoing disputes, Dunamu continues to dominate South Korea’s crypto market. Upbit now handles more than 80% of domestic trading volume and ranks among the largest spot exchanges globally. Dunamu reported a net profit of 708.8 billion won (~$474 million) on revenue of 1.56 trillion won (~$1.04 billion) in fiscal 2025, and held 13.17 trillion won (~$8.81 billion) in total assets at the end of last year.
At the same time, South Korea is gradually easing parts of its digital asset policy. Regulators now allow listed companies to invest up to 5% of their equity in digital assets. Consequently, banks and fintech firms are increasing competition in blockchain services and stablecoin-related infrastructure.
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