South Korea's Financial Supervisory Service has officially initiated sanctions against Dunamu, the parent company of Upbit.

BlockBeats News, July 19th. The Financial Supervisory Service of South Korea has issued an inspection opinion letter to Upbit's parent company Dunamu regarding last November's hacker attack incident, officially initiating the sanction process. Dunamu disclosed the hacker attack incident only after the completion of its merger with Naver Financial on the same day, sparking controversy over "delayed reporting." The company later froze and recovered about 2.6 billion Korean won in assets, and the remaining 38.6 billion Korean won in user losses were fully compensated from Upbit's own assets.

South Korea's current "Virtual Asset User Protection Act" focuses on user protection and unfair transactions but lacks direct penalty clauses for hackers and system incidents. It is still unknown whether this sanction can escalate to a severe penalty. The head of the Financial Supervisory Service has previously admitted that "the authority to impose penalties is relatively limited, but this is not an event that can be easily overlooked." The South Korean financial authorities plan to supplement penalty and compensation clauses for hackers and system incidents in the second phase of the "Digital Assets Basic Act" legislation. The Financial Supervisory Service will finalize the sanction level through votes from the Sanctions Review Committee, the Securities and Futures Commission, and the Financial Commission after Dunamu completes the explanation process.