Dunamu, the parent company of Upbit, responds to Nasdaq listing: Confirms contact with the US SEC and CFTC, plans to establish IPO Committee

BlockBeats News, August 25th. The operator of the South Korean cryptocurrency exchange Upbit, Dunamu, responded to rumors of a U.S. listing, stating that the company has indeed been in contact with the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), but has not yet confirmed a U.S. listing and has not converted its financial statements to U.S. Generally Accepted Accounting Principles.

Dunamu stated that it is currently progressing with a stock swap with Naver Financial to be completed by December 31st, with valuations of 150 trillion KRW and 50 trillion KRW for each, and an exchange ratio of approximately 2.54 shares of Naver Financial for every 1 share of Dunamu. After the transaction is completed, both parties plan to establish an IPO committee within a year to proceed with the listing.

The market believes that Nasdaq could be a potential listing venue, mainly because Naver is already listed on a Korean trading platform. If Dunamu were to have a secondary listing in Korea as a subsidiary in the future, it may face regulatory restrictions on "duplicate listings of parent and subsidiary companies." If ultimately listed in the U.S., Dunamu may complete the listing through American Depositary Receipts (ADR). Korean legal entities and Upbit's operations are expected to remain, and services such as the acceptance of Korean won by users are not expected to be directly affected.