Dunamu Launches Cold Wallet Custody for Institutions Amid Rising Crypto Regulation

Dunamu, the operator of South Korea’s largest cryptocurrency exchange Upbit, has launched a cold wallet custody service tailored for institutional clients, responding to increasing demand for secure digital asset storage as regulatory clarity emerges in the virtual asset market [1]. The service stores 100% of client assets in offline cold wallets, offering enhanced protection against cyber threats by isolating funds from internet-connected systems [1].

To strengthen security, the platform utilizes multi-party computation and distributed key generation, ensuring that no single key can compromise client funds in the event of a breach [1]. This approach mitigates internal risks by distributing control across multiple parties, reinforcing trust in the custody solution [1].

Institutions can further customize wallet structures based on asset type and purpose, enabling more efficient asset management, streamlined accounting, and improved audit readiness [1]. Role-based access controls and approval workflows align with corporate governance standards, while integrated anti-money laundering and fraud detection tools provide real-time monitoring and suspicious activity flagging [1].

An Upbit spokesperson emphasized the importance of accountability, technical stability, and procedural transparency in virtual asset custody [1]. The platform is designed to meet legal compliance standards, incorporating robust internal controls and audit systems that align with global institutional requirements [1].

In a related development, Dunamu has signed a memorandum of understanding with Vietnam’s Military Bank (MB Bank) to launch the country’s first cryptocurrency exchange [1]. Under the partnership, Dunamu will provide its Korean exchange model and technology, offering guidance on regulatory compliance, investor protection, and talent development [1]. This collaboration reflects Vietnam’s growing digital asset ecosystem, particularly following the country’s legalization of crypto in June under the Law on Digital Technology Industry [1].

South Korea’s regulatory landscape is also evolving. The Financial Services Commission (FSC) has proposed a roadmap to approve spot cryptocurrency ETFs, aligning with the government’s push to modernize digital asset regulations and attract younger investors [1]. The plan includes measures for spot crypto ETF implementation and regulatory frameworks for won-based stablecoins in the second half of 2025 [1]. Historically, the FSC had opposed crypto ETFs due to concerns over volatility and financial risk, viewing cryptocurrencies as unsuitable underlying assets [1].

Source: [1] Upbit Operator Dunamu Rolls Out Cold Wallet Custody for Institutions (https://cryptonews.com/news/upbit-operator-dunamu-rolls-out-cold-wallet-custody-for-institutions/)