Dunamu, the parent organization of South Korea’s leading cryptocurrency exchange UPbit, has reported a remarkable growth in earnings for 2024, overcoming persistent regulatory hurdles.
According to the company’s annual business report, operating profit soared by 85.1%, reaching 1.19 trillion won (around $682 million) for the year.
The firm’s total revenue increased by 70.5% year-on-year, amounting to 1.73 trillion won ($1.1 billion). Additionally, net profit rose by 22.2%, hitting 983.8 billion won ($670 million), compared to 805 billion won in 2023.
This impressive performance has been attributed to a surge in trading activity triggered by Bitcoin’s recent halving event. Last April, Bitcoin underwent its fourth halving, which reduced block rewards from 6.25 BTC to 3.125 BTC.
Furthermore, positive market sentiment among investors has grown following the election of Donald Trump in the United States, a figure often regarded as supportive of cryptocurrency markets.
Since his inauguration, the Trump administration has introduced several pro-cryptocurrency measures that have favorably influenced the trajectory of the industry, attracting substantial institutional investments.
Simultaneously, Dunamu highlighted that expectations of decreasing interest rates from the Federal Reserve have helped enhance global liquidity, further driving activity in digital assets.
### Regulatory Challenges
Despite these strong financial outcomes, Dunamu finds itself facing ongoing regulatory scrutiny.
South Korean authorities have accused Upbit of not conducting adequate due diligence on a significant number of its users. As a result, the Financial Intelligence Unit (FIU) has prohibited the platform from onboarding new customers or permitting transfers of virtual assets effective March 7.
Nonetheless, Dunamu has contested the FIU’s ruling, asserting that it has already made the necessary steps to comply with regulations. The company argues that the penalties imposed are excessive and were set without a full understanding of the circumstances, warning that the sanctions could severely impact its operations.
According to a local news report, a South Korean court provisionally lifted the ban on March 27.
This ruling enables Dunamu to legally challenge the regulatory suspension and temporarily halts the ban’s enforcement until a conclusive decision is made. Even if the suspension is reinstated, it will not take effect for 30 days post-ruling, granting the firm crucial time to maintain its operations without disruption.