The validity of the "three-month partial suspension of operations" imposed on Upbit, the largest virtual asset exchange in South Korea, is expected to be decided before the 27th.
On the 13th, the Seoul Administrative Court’s Administrative Division 5 (Presiding Judge Kim Soon-yeol) held a hearing on the lawsuit filed by Dunamu, the operator of Upbit, against the Financial Intelligence Unit (FIU) under the Financial Services Commission, seeking to cancel the partial suspension of operations. The court held the hearing privately and listened to both parties' arguments.
Each side was represented by a team of three lawyers. Dunamu’s legal team included a former chief judge of the Seoul Administrative Court and an expert with experience advising the Financial Services Commission’s task force and the FIU. The FIU also responded with a team led by former government officials.
The court set the deadline for additional written submissions to the 20th and will review them before deciding whether to grant a stay of execution by the night of the 27th. According to legal experts, decisions on stays of execution are generally made the day before the enforcement takes effect.
The partial suspension of Upbit's operations is set to take effect at midnight on the 28th. If the court does not grant the stay of execution by the 27th, new users' deposits and withdrawals of virtual assets will be restricted as planned.
During the hearing, Dunamu emphasized the urgency of the stay of execution, arguing that it must be granted first so that the legality of the "three-month partial suspension" can be contested in the main lawsuit.
On the other hand, the FIU reiterated that the sanction was appropriate. The FIU maintained its position that "preventing money laundering under the Act on Reporting and Using Specified Financial Transaction Information (the Special Act) is an internationally agreed matter, and the partial suspension of Upbit's operations is justified."
Both parties acknowledged that there are numerous points of contention in the main lawsuit, and as the trial progresses, an intense legal battle is expected.
A Dunamu representative stated, "We have sufficiently explained the facts and will continue to participate in the proceedings in good faith."
Meanwhile, the FIU finalized severe disciplinary measures against Upbit and its executives on the 25th of last month.
The FIU imposed a "three-month partial suspension of operations," prohibiting new users from transferring virtual assets on Upbit. In addition, CEO Lee Seok-woo and other executives received "reprimands," while the compliance officer was subjected to "dismissal."
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Upbit's Operation Suspension Injunction Decision Expected Before 27th
The validity of the
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