South Korean crypto alternate Upbit’s operator, Dunamu, has challenged the sanctions imposed by the Financial Intelligence Unit (FIU) by submitting an attraction with the Seoul Administrative Court. 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, Files Lawsuit
In a recent development, Dunamu, South Korean crypto alternate Upbit’s operator, filed an attraction towards the Financial Intelligence Unit. The attraction seeks to cancel the enterprise suspension order imposed by the FIU. In addition, the platform requests the courtroom for a keep of execution, halting the implementation of the company’s disciplinary actions.
Keeping particular particulars undisclosed, a Dunamu official said,
We made a cautious choice, and it’s troublesome to speak in regards to the particular particulars…We will faithfully clarify in the course of the trial.
Dunamu Faces Business Suspension Order over Regulatory Obligations
Recently, South Korea’s FIU introduced disciplinary actions towards 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.
In element, the regulator banned Dunamu from facilitating new customers to switch cryptocurrencies from and to different exchanges from March 7 to June 6, 2025. However, the platform’s present clients might proceed buying and selling actions in the course of the suspension interval.
Along with the enterprise suspension order, the FIU additionally took disciplinary actions towards 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 growing scrutiny over crypto platforms comes amid the US SEC’s loosened laws. Recently, the SEC dropped multiple crypto lawsuits involving Coinbase, Robinhood, Uniswap, and Tron Foundation.
Upbit’s Crypto Regulatory Violations: Insights
Significantly, 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. In specific, the regulator discovered Dunamu facilitating over 45,000 crypto transactions with 19 unregistered abroad digital asset service suppliers.
In addition, the platform failed to stick to the shopper verification guidelines on an enormous scale. In January, the FIU suspended Upbit’s operations, citing Know-Your Customer (KYC) violations. The company additionally warned the corporate over violating the Specific Financial Transaction Information 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.
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