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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] South Korea’s leading cryptocurrency exchange, Upbit, is expected to receive a decision on the validity of its three-month partial business suspension issued by financial authorities by March 27.
On Thursday, the Seoul Administrative Court’s Administrative Division 5 (Presiding Judge Kim Soon-yeol) held a hearing on Dunamu’s request to cancel the suspension order imposed by the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC).
The hearing was conducted privately at Dunamu’s request. Three lawyers representing Dunamu, including a former Seoul Administrative Court chief judge and advisors with experience in the FSC task force and FIU advisory committee, attended. The FIU was also represented by a legal team led by former high-ranking officials.
The court set March 20 as the final date for submitting additional written arguments. Over the next week, it will accept supplementary submissions based on the discussions from the hearing. After reviewing the additional materials, the court is expected to decide whether to grant a stay of execution before the suspension takes effect on the night of March 27. Legal experts note that such decisions are typically made the day before enforcement.
If the court does not grant the suspension by March 27, Upbit’s new users will be unable to deposit or withdraw virtual assets starting from midnight on March 28.
During the hearing, Dunamu reportedly emphasized the urgency of suspending the enforcement, arguing that the decision must be overturned before the main lawsuit proceeds in order to challenge the legitimacy of the three-month suspension.
On the other hand, the FIU reiterated that the measure was appropriate, stressing that preventing money laundering under the Act on Reporting and Using Specified Financial Transaction Information (Special Act) aligns with international agreements. Thus, the suspension order against Upbit was justified.
Both parties acknowledged that there are more legal issues to contest in the main lawsuit, suggesting an intense legal battle ahead once the case formally begins.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
