Dunamu, the parent company of South Korea’s largest crypto exchange UPbit, has reported a significant increase in earnings for 2024, despite ongoing regulatory challenges. According to Chosun Bix, Dunamu’s operating profit surged by 85.1% to 1.19 trillion won (approximately $682 million) in 2024. The firm’s revenue also climbed by 70.5% year-over-year to 1.73 trillion won ($1.1 billion), while net profit rose by 22.2% to 983.8 billion won ($670 million) from 805 billion won in 2023.
This strong performance was attributed to heightened trading activity fueled by Bitcoin halving, which occurred last April. Additionally, positive investor sentiment following the US election of Donald Trump, who is perceived as favorable to crypto markets, contributed to the company’s success. The Trump administration’s pro-crypto moves and expectations of lower interest rates from the Federal Reserve also helped boost global liquidity and digital asset activity.
Despite its financial success, Dunamu is currently facing regulatory scrutiny in South Korea. The Financial Intelligence Unit (FIU) accused UPbit of failing to conduct sufficient due diligence on its users, leading to a ban on accepting new customers or allowing them to transfer virtual assets starting March 7. Dunamu contested the FIU’s decision, arguing that it had already implemented necessary compliance measures and that the sanctions were disproportionate and could harm its operations.
In a recent development, a South Korean court temporarily lifted the ban on March 27, allowing Dunamu to challenge the regulatory suspension in court. The enforcement of the ban would be paused until a final verdict is reached, providing the company with critical time to continue operating uninterrupted. This decision offers hope for Dunamu as it navigates the regulatory challenges in the South Korean market.
Overall, Dunamu’s financial success in 2024 demonstrates the company’s resilience in the face of regulatory challenges and its ability to adapt to changing market conditions. As the crypto industry continues to evolve, Dunamu remains a key player in the South Korean market, poised to capitalize on future opportunities and overcome regulatory hurdles.