Dunamu, which operates the digital asset exchange Upbit, was sanctioned by the Fair Trade Commission for falsely advertising discounted transaction fee rates.

On March 25, the FTC said it decided to impose a corrective order on Dunamu for deceptively advertising Upbit's transaction fee rate as being heavily discounted compared with the actual rate. It said the conduct violated the Act on Fair Labeling and Advertising.

According to the FTC, Dunamu advertised through notices on its website that it was sharply cutting the fee rate from 0.139 percent to 0.05 percent, even though it has not applied a 0.139 percent fee rate for general orders from Upbit's early days through the present.

It also promoted the discount as a "limited-time benefit" offered only for a certain period. An investigation found that the advertised 0.05 percent fee rate has continued to apply without change from launch through the present. The FTC judged this to be false and exaggerated advertising that misled consumers and induced them to trade.

The move is significant as the first case to sanction unfair advertising by a digital asset exchange. It was particularly criticised for failing to transparently disclose the fee rate, one of the factors users consider most important when choosing an exchange, and for abusing it as a marketing tool.

An FTC official said, "We corrected deceptive advertising regarding fee rates, the top consideration for digital asset exchange users when choosing an exchange." The official added, "We plan to continue monitoring unfair advertising by digital asset exchanges and respond sternly when violations are detected."