Upbit's Plans for Nasdaq Listing Encounter Regulatory Challenges Amid South Korea's Stricter Crypto Regulations

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Upbit's Plans for Nasdaq Listing Encounter Regulatory Challenges Amid South Korea's Stricter Crypto Regulations

Bitget-RWA2025/11/24 15:26

By:Bitget-RWA

- Upbit and Naver merge to form a $13.8B fintech group, aiming for a Nasdaq IPO with potential $34B valuation. - South Korea's FIU intensifies crypto regulation, fining Upbit's Dunamu $25.7M for AML/KYC violations and targeting rivals. - Regulatory scrutiny delays Bithumb's IPO plans as exchanges face strict compliance demands and surprise inspections. - Stricter crypto rules aim to align with traditional finance standards, balancing innovation with institutional trust requirements.

Upbit, the leading cryptocurrency exchange in South Korea, is making strides toward a possible initial public offering (IPO) on Nasdaq after merging with technology powerhouse Naver. This merger, executed through a stock exchange,

is set to establish a fintech conglomerate with an estimated value of $13.8 billion

, and analysts predict the valuation could surpass $34 billion if the Nasdaq debut comes to fruition. This development signals a major transformation in South Korea’s digital asset industry, as prominent companies increasingly look to international capital markets to fuel their growth.

The union of Dunamu, Upbit’s parent company, and Naver Financial aims to combine Dunamu’s blockchain technology and stablecoin expertise with the payment solutions offered by Naver Pay.

This partnership highlights Naver’s goal to lead

the fast-changing fintech sector in South Korea. Dunamu’s latest earnings add momentum to the collaboration:

the firm posted an 85% increase in profits year-over-year

and tripled its dividends to shareholders over the past year. These achievements reinforce its credentials as a strong contender for a U.S. listing, subject to regulatory clearance.

Yet, the journey to Nasdaq is not without obstacles. The Financial Intelligence Unit (FIU) in South Korea has ramped up oversight of crypto platforms, enforcing rigorous anti-money laundering (AML) standards.

Dunamu, which manages Upbit, received a penalty

of 35.2 billion won (about $25.7 million) in November 2025 for breaches related to KYC/AML protocols. The FIU is now moving to impose comparable measures on other top exchanges, such as Bithumb, Coinone, Korbit, and GOPAX,

after conducting a year-long review

. Industry observers expect that fines will be issued in the order the inspections were completed,

with Bithumb possibly experiencing delays

as its order book operations are still under examination.

The regulatory climate is part of South Korea’s broader effort to bring its crypto market in line with conventional financial practices.

The FIU now requires detailed KYC disclosures

, imposes strict penalties for violations, and conducts unannounced audits to ensure compliance. Although this stance has sparked debate over market openness, supporters believe it boosts institutional trust by showcasing strong regulatory oversight.

Bithumb, another major exchange, has revealed intentions

to pursue a U.S. IPO as well, and has reorganized segments of its business through a spinoff in preparation.

The intersection of regulatory pressures and aspirations for international growth marks a crucial juncture for South Korea’s crypto industry. While Upbit’s Nasdaq pursuit could raise its global standing, the sector remains under close watch as authorities strive to balance progress with compliance. The results of these trends will likely determine whether South Korean exchanges can continue expanding while adhering to global standards.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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