Bithumb will file a lawsuit challenging a partial business suspension imposed by the financial authorities for alleged violations of the Act on Reporting and Using Specified Financial Transaction Information.
On the 24th, Bithumb said it filed an administrative suit the previous day with the court to cancel the six-month partial business suspension and fines imposed by the Financial Intelligence Unit (FIU). It also applied to the court for a stay of execution of the sanctions.
If the request for a stay is granted, the partial business suspension against Bithumb, which was set to take effect on the 27th, will be halted until a ruling on the merits.
Earlier, the FIU said Bithumb violated 6.65 million cases, including the obligation to prohibit transactions with unregistered virtual asset service providers under the law, customer due diligence obligations, and transaction restriction obligations, and on the 16th imposed heavy sanctions including a six-month partial business suspension along with 36.8 billion won in fines.
A partial business suspension halts the transfer (deposits and withdrawals) of external virtual assets for new customers. The six-month partial business suspension is the toughest sanction to date imposed on a won-denominated market exchange in Korea.
A Bithumb official said, "We made the decision because we determined there are additional aspects of the sanctions that need review," and added, "We plan to explain our position during the trial."