[Alpha Biz= Paul Lee] Dunamu, previously found to have violated customer due diligence obligations under the Act on Reporting and Use of Specific Financial Transaction Information following an inspection by the Financial Intelligence Unit (FIU), has now been sanctioned for breaching Korea’s Fair Labeling and Advertising Act by falsely promoting discounted trading fees.
According to the Korea Fair Trade Commission (KFTC) on March 27, Dunamu advertised on its website as if it were offering discounted trading fees, despite never having applied a standard fee rate of 0.139% to general orders since launching its cryptocurrency exchange in 2017. The company also indicated that such discounts were being offered on a temporary basis.
In reality, Dunamu did not implement any trading fee discounts for more than seven years after its exchange launch. It was only in February 2025 that the company reduced the base fee rate for general orders in the Korean won market to 0.05%, after which it began revising related advertisements.
The KFTC determined that Dunamu’s actions constituted false and exaggerated advertising prohibited under Article 3(1)1 of the Fair Labeling and Advertising Act. The regulator imposed corrective measures on the company for advertising its fees as if they had been significantly discounted from 0.139% to 0.05%.
This marks the first case in which the KFTC has sanctioned unfair advertising practices by a cryptocurrency exchange.
“The decision is significant in that it corrects false and exaggerated advertising regarding trading fees, which are a primary consideration for users when selecting an exchange,” the KFTC stated. “We will continue to monitor unfair advertising practices in the cryptocurrency exchange sector and respond strictly to any violations.”
Earlier, Dunamu had been subject to partial business suspension and fined KRW 35.2 billion for violations of the Act on Reporting and Use of Specific Financial Transaction Information.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
