Photo courtesy of Yonhap News

 

[Alpha Biz= Paul Lee] A South Korean court is set to rule this week on whether to suspend enforcement of tough regulatory sanctions imposed on crypto exchanges, with the outcome expected to have broad implications for the industry.

According to industry sources on April 26, the Seoul Administrative Court has set April 29 as the deadline for additional submissions in the case between Bithumb and the Financial Intelligence Unit (FIU). A decision on whether to grant a stay of execution is expected on April 30.

The FIU previously imposed a six-month partial business suspension and a KRW 36.8 billion fine on Bithumb, citing 6.65 million violations of anti-money laundering rules, including dealings with unregistered virtual asset operators and failures in customer verification and transaction restrictions.

Bithumb argued in court that the suspension would effectively halt normal business operations by restricting deposits and withdrawals for new customers, causing irreparable harm even if it prevails in the main lawsuit.

The FIU countered that the sanctions apply only to a portion of transactions and would have limited impact on overall operations, arguing that the damage would not be irreversible.

A recent ruling involving Dunamu is seen as a key variable. Earlier this month, the court ruled in favor of Dunamu in a similar case, recognizing its compliance efforts and the lack of clear regulatory standards. The FIU has appealed that decision.

The upcoming ruling is expected to influence other exchanges, including Coinone, which is also facing a three-month partial suspension and may pursue legal action depending on the outcome.

 

 

 

 

AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)