South Korean crypto change Upbit’s operator, Dunamu, has challenged the sanctions imposed by the Monetary Intelligence Unit (FIU) by submitting an enchantment with the Seoul Administrative Courtroom. As a part of the authorized motion, Dunamu filed a lawsuit searching for to overturn the enterprise suspension order and to halt the execution of the sanctions.
Upbit Operator Dunamu Seeks to Halt FIU’s Sanctions, Information Lawsuit
In a recent development, Dunamu, South Korean crypto change Upbit’s operator, filed an enchantment in opposition to the Monetary Intelligence Unit. The enchantment seeks to cancel the enterprise suspension order imposed by the FIU. As well as, the platform requests the court docket for a keep of execution, halting the implementation of the company’s disciplinary actions.
Retaining particular particulars undisclosed, a Dunamu official said,
We made a cautious determination, and it’s troublesome to speak concerning the particular particulars…We’ll faithfully clarify throughout the trial.
Dunamu Faces Enterprise Suspension Order over Regulatory Obligations
Lately, South Korea’s FIU introduced disciplinary actions in opposition to Dunamu citing its failure to satisfy key regulatory obligations. On Tuesday, the company requested the platform to finish enterprise operations for 3 months. As a part of the event, Dunamu would face restrictions on new clients’ crypto transactions.
Intimately, the regulator banned Dunamu from facilitating new customers to switch cryptocurrencies from and to different exchanges from March 7 to June 6, 2025. Nevertheless, the platform’s present clients may proceed buying and selling actions throughout the suspension interval.
Together with the enterprise suspension order, the FIU additionally took disciplinary actions in opposition to Dunamu’s executives. Notably, the regulator despatched a warning to CEO Lee Sirgo and dismissal orders or cautions for eight different staff.
Notably, South Korea’s rising scrutiny over crypto platforms comes amid the US SEC’s loosened laws. Lately, the SEC dropped multiple crypto lawsuits involving Coinbase, Robinhood, Uniswap, and Tron Basis.
Upbit’s Crypto Regulatory Violations: Insights
Considerably, the FIU alleged Upbit and its operator breached a number of key laws, together with digital asset transaction guidelines, buyer verification necessities, and suspicious transaction reporting mandates. Particularly, the regulator discovered Dunamu facilitating over 45,000 crypto transactions with 19 unregistered abroad digital asset service suppliers.
As well as, the platform failed to stick to the client verification guidelines on a large scale. In January, the FIU suspended Upbit’s operations, citing Know-Your Buyer (KYC) violations. The company additionally warned the corporate over violating the Particular Monetary Transaction Data Act.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of expertise in blockchain, web3, and fintech spheres. She has established herself as a educated and fascinating voice within the cryptocurrency and blockchain house. Her expertise as an Assistant Professor in English Language and Literature has additional added to her quest for crafting informative, well-researched, and accessible content material.
Disclaimer: The offered content material might embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty on your private monetary loss.
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