Story Highlights
- Dunamu sues FIU over sanctions imposed on Upbit, seeking to overturn disciplinary measures.
- FIU penalized Dunamu, suspending business for three months and disciplining CEO Lee Seok-woo.
- Dunamu challenges FIU in court, requesting a hold on punishments until the case is resolved.
Dunamu, the parent company of Upbit, has filed a lawsuit against South Korea’s Financial Intelligence Unit (FIU). Dunamu fights against the disciplinary measures issued by the governing authority. The legal action seeks to nullify all disciplinary measures imposed against Dunamu personnel and its personnel.
FIU Issues Disciplinary Action Against Dunamu and CEO
The company, Dunamu, filed its case at the Seoul Administrative Court on February 27. At the same time the firm requested a hold of punishments until the sanctions were resolved. An official from the company declared the decision took careful consideration yet provided no additional details. Dunamu has determined to express its defense strategy at the upcoming court proceedings.
On February 25, the FIU disclosed disciplinary measures against Dunamu together with its workforce members. Dunamu received a three-month business shutdown, and CEO Lee Seok-woo received a disciplinary notice as well as the ouster of its compliance official. The Specific Financial Information Act became the basis for authorities accusing the company.
New users will be unable to move digital property between March 7 and June 6 during the period of restricted transfer. This enforcement decision was adopted after inspectors from FIU completed their examination from August to October throughout last year. The inspection showed that Dunamu participated in business deals with overseas virtual asset operators that did not have proper registration. The company did not satisfy requirements regarding identifying its customers.
Upbit Sanctions Case Could Shape Future Crypto Laws in South Korea
Upbit released a public recognition about the imposed sanctions. The company responded to financial authority concerns while expressing that it implemented required corrections. From Upbit’s perspective some important aspects were not taken into consideration during the decision-making stage of sanctions. The company will utilize the legitimate procedures mentioned in the regulations to present its stance.
The legal dispute reveals how South Korean authorities continue to maintain conflicts with operators in the cryptocurrency market. Major crypto firms resist what they deem to be overly restrictive governmental regulations despite the official governmental controls. This case will set a precedent that South Korean lawmakers might use for future decisions regarding digital asset regulations.
