South Korean exchange UPbit saw massive earnings growth in 2024 amid regulatory hiccups

Dunamu, the parent company of South Korea’s largest crypto exchange UPbit, reported a significant increase in earnings for 2024, defying ongoing regulatory challenges.

Chosun Bix, citing the firm’s annual business filing, reported that Dunamu’s operating profit surged 85.1% to 1.19 trillion won (approximately $682 million) in 2024.

According to the report, the firm’s revenue climbed 70.5% year-over-year to 1.73 trillion won ($1.1 billion), while net profit rose 22.2%, hitting 983.8 billion won ($670 million) from 805 billion won in 2023.

The report attributed this strong performance to heightened trading activity fueled by Bitcoin halving. Last April, BTC had its fourth halving event, which slashed block rewards from 6.25 BTC to 3.125 BTC.

Beyond that, the firm noted that positive investor sentiment grew following the US election of Donald Trump, who is widely seen as favorable to crypto markets.

Since his inauguration, the Trump administration has implemented a series of pro-crypto moves that have positively improved the trajectory of the emerging industry and attracted significant institutional investors.

At the same time, Dunamu pointed out that the expectations of lower interest rates from the Federal Reserve helped improve global liquidity, further boosting digital asset activity.

Regulatory issues

Despite the positive financial results, Dunamu remains entangled in regulatory scrutiny.

South Korean regulators accused Upbit of failing to conduct sufficient due diligence on many of its users. In response, the Financial Intelligence Unit (FIU) barred the exchange from accepting new customers or allowing them to transfer virtual assets starting March 7.

However, Dunamu contested the FIU’s decision, arguing that it had already taken necessary compliance measures.

The firm maintained that the sanctions were disproportionate and imposed without understanding the context. According to Dunamu, the penalty could cause lasting harm to its operations.

According to a report from local outlet Newsis, a South Korean court temporarily lifted the ban on March 27.

The ruling allows Dunamu to challenge the regulatory suspension in court and pauses the ban’s enforcement until a final verdict is reached.

Even then, the suspension would not take effect for 30 days after the ruling—offering the company critical time to continue operating uninterrupted.

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