Dunamu Seeks US or Korean Listing Amid Tightening Regulatory Environment

Dunamu, the operator of South Korea's largest cryptocurrency exchange, Upbit, has confirmed that it is pursuing a listing in either the US or its home market. The company has already contacted the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), but has not decided on which country to list first.

The speculation surrounding Dunamu's potential US listing has been fueled by reports that it had switched accounting standards to US GAAP ahead of a US initial public offering (IPO). However, a company official denied these claims, stating that they only reviewed how US accounting standards differ from South Korean rules and did not actually switch standards.

Despite this clarification, the market still sees a Nasdaq listing as the most likely scenario. The main reason for this is the tighter listing rules in South Korea, which have recently been made stricter by the government. In contrast, the US has become more receptive to attracting overseas crypto exchanges, with regulators loosening rules and signaling their desire to attract foreign listings.

According to the company's plan, it will exchange shares with Naver Financial on December 31, after which a listing committee will be formed within a year. The exchange ratio is 2.54 Naver Financial shares for each Dunamu share, and the companies were valued at 15 trillion won ($10.9 billion) for Dunamu and 5 trillion won ($3.6 billion) for Naver Financial.