The domestic cryptocurrency exchange Upbit has had the effect of the 'three-month partial suspension of operations' it received from the financial authorities temporarily suspended.
According to the legal community on the 27th, the Seoul Administrative Court's Administrative Division 5 (Director General Kim Soon-yeol) issued a ruling to grant a stay of execution sought by Dunamu against the Financial Intelligence Unit (FIU) the previous day. Consequently, the effect of the partial suspension of operations imposed on Upbit will be suspended until the main lawsuit filed by Dunamu is concluded. Specifically, it will be suspended until 30 days after the announcement of the main lawsuit verdict. For Dunamu, this means they have bought some time.
Earlier, the FIU confirmed heavy disciplinary action against Dunamu and its executives for violating the Special Financial Transactions Act on the 25th of last month. Inspections conducted last year revealed that Upbit was supporting transactions with overseas unreported cryptocurrency exchanges and allowing transactions without customer verification.
The FIU imposed a 'three-month partial suspension of operations' prohibiting cryptocurrency transfers (deposits and withdrawals) for new users on Upbit. It also issued 'written warnings' to executives including CEO Lee Seok-woo and 'dismissals' to compliance officers. Subsequently, on the 27th of last month, just two days after the heavy disciplinary action was confirmed, Dunamu filed a lawsuit to cancel the partial suspension of operations with the administrative court and applied for a stay of execution.