Upbit's Nasdaq Push Faces Regulatory Hurdles as Market Dominance Sparks Monopoly Concerns

South Korea's leading cryptocurrency exchange Upbit, operated by Dunamu, is positioning itself for a Nasdaq IPO following a landmark merger with tech giant Naver, a deal valued at $14.5 billion. The merger, structured as a stock-swap agreement, will see Naver Financial absorb Dunamu, making Upbit a wholly owned subsidiary of one of the country's most influential technology firms. The transaction, first reported in September, is set to be finalized after board meetings scheduled for November 26, with a joint press conference planned to detail the integration according to reports.

The revised terms of the merger reflect Dunamu's strong financial performance. Naver Financial agreed to a 1:3.3–3.4 exchange ratio in favor of Dunamu shareholders, a shift from initial proposals that undervalued the crypto firm. This adjustment followed pushback from minority investors, underscoring Dunamu's dominance in South Korea's crypto market. The company reported KRW 1.186 trillion ($1.08 billion) in operating profit for 2024, nearly ten times Naver Financial's earnings. In Q3 2025, Dunamu's net income surged 300% year-over-year to $165 million.

Upbit's strategic merger with Naver aligns with broader trends in the crypto industry, where firms are increasingly seeking U.S. listings to access global capital. The exchange, which processes $2.1 billion in daily trading volume, controls roughly 70% of South Korea's crypto market, with peaks reaching 80% in certain months. Its integration with Naver's fintech ecosystem could enhance regulatory compliance, addressing prior scrutiny over Know-Your-Customer (KYC) lapses and anti-money laundering (AML) practices according to analysis.

The deal also positions Upbit to capitalize on South Korea's evolving digital asset framework. Naver plans to launch a won-backed stablecoin, leveraging its dominance in payments and digital services. This initiative aligns with regulatory efforts to establish a legal framework for local-currency stablecoins, a move that could streamline cross-border transactions and boost adoption according to industry reports.

Regulatory approval remains a critical hurdle. South Korea's Financial Supervisory Service and Fair Trade Commission will assess the merger for potential monopolistic risks, particularly given Upbit's market dominance and Naver's control over a major payments network. Analysts suggest the combined entity could pursue a Nasdaq listing as early as 2026, contingent on market conditions and regulatory clarity according to market analysis.

The merger's timing coincides with a surge in crypto IPOs in 2025. Firms such as Circle, Gemini, and Grayscale have successfully listed, while Kraken and Bithumb are exploring similar paths. Upbit's potential Nasdaq debut could further solidify South Korea's role in the global crypto-fintech landscape. If successful, the listing could value the merged entity at over $34 billion, combining Naver's fintech reach with Upbit's blockchain infrastructure according to market projections.

Dunamu's financial strength and Naver's strategic vision highlight the transformative potential of the deal. With Naver's stock rising nearly 20% on the merger news and Dunamu's unlisted shares hitting three-year highs, investor confidence appears robust. However, challenges remain, including regulatory scrutiny and the need to balance growth with compliance in a sector still grappling with evolving global standards according to industry observers.