South Korea’s police have reportedly summoned executives from the biggest native crypto exchanges for questioning concerning allegations of favor-seeking and favoritism from a now-independent lawmaker.
Dunamu, Bithumb Executives Summoned By Police
On Wednesday, the Seoul Metropolitan Police Company’s Public Crimes Investigation Unit referred to as former Dunamu CEO Lee Seok-woo and Bithumb officers as witnesses within the investigation of allegations in opposition to impartial lawmaker Kim Byung-kee.
In accordance with native studies, police reportedly questioned the previous CEO of Dunamu, the corporate that operates South Korea’s largest crypto trade, Upbit, about whether or not Kim requested employment for his second son throughout a dinner assembly in November 2024.
Kim’s former aides have claimed that the previous Democratic Get together’s flooring chief had proven important curiosity in crypto-related firms similar to Dunamu and Bithumb, the second-largest crypto trade within the nation, for his son’s employment.
Nonetheless, after failing to safe a spot on the native business chief, the lawmaker allegedly organized for his son to work at Bithumb, the place he labored for six months, beginning in January 2025. A former aide informed reporters in December that Kim had “initially tried to get him employed at ‘someplace else,’ however when that fell by, he bought him employed at Bithumb.”
The studies alleged that Kim had instructed his aides to “assault Bithumb’s opponents” after the assembly with former CEO Lee and a job opening at Bithumb in November. He seemingly affirmed that “Dunamu’s monopoly is an entire downside.”
The lawmaker has been accused of looking for to favor the crypto trade his son labored for by repeatedly questioning Dunamu “in a fashion meant to assault it” throughout Political Affairs Committee conferences.
Kim informed then-Monetary Companies Fee (FSC) Chairman Kim Byung-hwan that “the largest downside with Korea’s digital asset exchanges is the monopoly of a particular trade,” the studies famous. He additionally identified a Monetary Intelligence Unit (FIU) investigation that recognized almost 700,000 circumstances wherein Upbit didn’t comply with the right Know-Your-Shopper (KYC) course of.
The Seoul Metropolitan Police additionally summoned a Bithumb government on Tuesday and one other Bithumb official on Wednesday for questions concerning the allegations in opposition to the lawmaker.
FSC Explores Crypto Change Possession Cap
The investigation comes because the FSC explores imposing a cap on crypto trade possession. As reported by Bitcoinist, the monetary authority’s chairman, Lee Eog-weon, just lately revealed that the company is reviewing a proposal to restrict main shareholders’ stakes in exchanges at round 15%-20%.
Lee careworn the necessity to restrict the possession stakes of controlling shareholders in crypto exchanges, highlighting that present rules primarily deal with anti-money laundering and investor safety.
Nonetheless, the proposal has confronted backlash from business gamers and the ruling Democratic Get together of Korea (DPK). In accordance with native information shops, a joint council representing home crypto exchanges, together with Upbit, Bithumb, and Coinone, has opposed the cap.
Exchanges warned that the proposed restrict might hinder the event of South Korea’s crypto business. It’s value noting that if the legislation is enacted, main gamers like Dunamu’s chairman, Tune Chi-hyung, and Coinone’s founder, Cha Myung-hoo, can be pressured to promote a big portion of their holdings to adjust to the possession restrict.
In the meantime, members of the Democratic Get together additionally expressed their issues, affirming that comparable caps are unusual and will make South Korea’s framework inconsistent with international regulatory traits and uninviting to traders.
The trade possession cap proposal can be included within the upcoming Digital Asset Fundamental Act, also referred to as the Second Section of the Digital Asset Person Safety Act, which is able to function a complete framework for the whole crypto business.
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