Dunamu Wins Top Score in South Korea Police Crypto Custody Tender

The National Police Agency wants an external organization to oversee seized cryptocurrencies. The aim is better storage security and fewer operational vulnerabilities. The move signals law enforcement's recognition that crypto custody needs specialized expertise.

Several market participants challenged the tender's qualification criteria. The agency required instant custody acceptance and around-the-clock response, with compensation assurances for any security breaches. Those requirements favored established operators like Upbit, which already has the infrastructure.

Some custody providers pushed for broader evaluations of security infrastructure and operational facilities. Domestic media said the final assessment skipped a planned physical site inspection. The police agency maintained the selection followed competitive procedures.

Dunamu also faces separate regulatory hurdles. The Upbit operator recently postponed its all-stock merger with Naver Financial for a second time. The company pushed the completion timeline to December 31 while awaiting outstanding clearances.

Dunamu now proceeds to contract negotiations. If finalized, the agreement will transfer seized cryptocurrencies to external management for one year.