South Korea’s Dunamu Pledges Nearly $9M to Protect Crypto Investors: Report

Dunamu, the South Korean operator of cryptocurrency exchange Upbit, said it will spend 10 billion won (US$8.9 million) setting up a unit to protect crypto investors.

• The “Upbit Protection Center for Digital Asset Investors” is intended to prevent fraud, conduct research and provide legal assistance and financial support to victims of crypto-related crimes, the Korea Herald reported Thursday.
• The announcement comes against the backdrop of a clampdown by South Korea’s government on crypto businesses.
• Crypto exchanges in the country have until Sept. 24 to register as Virtual Asset Service Providers, allowing regulators to determine the legality of firms’ operations.
• Dunamu will also start running an environmental, social and governance (ESG) management committee in 2022, headed by board director Song Chi-hying.
• This is part of Dunamu’s efforts to join the global ESG trend, a growing focus for financial institutions and regulators.
• In the crypto world, ESG is generally associated with the energy required in mining. However, it can also extend to how companies operate and their wider impact on society, such as association with fraud and money laundering.

See also: South Korea’s Crypto Legal Framework Is Insufficient, Lawmaker Says