Seoul Court Overturns Upbit Suspension

The Seoul Administrative Court has overturned a three-month partial business suspension imposed by South Korea's Financial Intelligence Unit on Dunamu Inc., the operator of the major cryptocurrency exchange Upbit, ruling that anti-money laundering regulations lacked sufficient clarity to justify the penalty.

The decision, handed down recently, ends a legal challenge that began after the FIU's onsite inspection in February 2025. The regulator had accused Dunamu of facilitating transactions with unregistered foreign virtual asset service providers and failing to meet know-your-customer standards, citing more than 600,000 potential violations during a review of Upbit's operating license. The suspension, announced on February 25, 2025, would have restricted new users from transferring digital assets, but Dunamu quickly filed a lawsuit and sought an injunction. On March 27, 2025, the court granted temporary relief, allowing Upbit to continue onboarding users while the case proceeded.

In its ruling, the court emphasized that while guidelines were explicit for transactions exceeding 1 million won, approximately 675 U.S. dollars, the rules for smaller transfers were ambiguous. Judges...