In an attempt to reverse the punishment and get an order to temporarily abolish the restriction, Dunamu filed a lawsuit against the nation’s banking authority.
A partial business ban on cryptocurrency exchange Upbit, which had barred the site from accepting new customers for three months, was temporarily overturned by a South Korean court.
The Financial Intelligence Unit (FIU) of South Korea sanctioned the exchange on February 25 and banned new customers’ deposits and withdrawals for three months. Prior to the suspension, the FIU claimed that Upbit had violated rules that prohibit exchanges from doing business with unregistered virtual asset service providers (VASPs).
Dunamu, Upbit’s parent firm, sued the FIU in an attempt to reverse the partial suspension decision after the FIU’s sentence. Dunamu also asked for an injunction to temporarily remove the suspension order.
The court issued the injunction, rescinding the suspension order 30 days after a court ruling, according to a March 27 article from local media outlet Newsis. As a result, Upbit may continue to serve new customers while the legal dispute is ongoing.
Upbit, the biggest cryptocurrency exchange in South Korea, was established in 2017. The Financial Services Commission (FSC) of the nation opened an inquiry into Upbit on October 10 in order to look into any violations of the anti-monopoly legislation of the nation.
The exchange is accused of breaking Know Your Customer (KYC) regulations in addition to anti-monopoly violations. The FIU discovered between 500,000 and 600,000 possible KYC breaches of the exchange on November 15. While examining the exchange’s business license renewal, the regulator discovered purported violations.
Regulators in South Korea banned anonymous cryptocurrency trading for its people in 2018. Users are now required to complete KYC processes before they can trade digital assets on cryptocurrency trading platforms such as Upbit.
In addition to these charges, Upbit was accused by the FIU of enabling 45,000 transactions with international cryptocurrency exchanges that were not registered. The nation’s Act on Reporting and Using Specified Financial Transaction Information is broken by this.
Related: South Korea intends to control international stablecoin exchanges
South Korea tightened the regulation on international transactions involving cryptocurrency assets on October 25, 2024. Choi Sang-Mok, the nation’s finance minister, said that the government would impose a reporting requirement on companies that deal with international transactions involving digital assets.
This seeks to encourage proactive oversight of cryptocurrency transactions “used for currency manipulation and tax evasion.”
At the FIU’s request, Google Play in South Korea disabled the apps of 17 cryptocurrency exchanges in accordance with the regulations. According to the FIU, efforts are also underway to limit access to exchanges via the internet and the Apple App Store.
Magazine: Japan jumps into stablecoins after a ridiculous “Chinese Mint” cryptocurrency scam: Asia Express
