- Upbit secures court order to pause FIU’s business ban, allowing operations to continue.
- Dunamu challenged the penalty, calling it excessive, and won a temporary suspension.
- SK’s crypto market saw significant growth in 2024, with 33% of investors being newcomers.
Upbit, South Korea’s largest cryptocurrency exchange, has won a key legal battle against the country’s financial regulator. The Seoul Administrative Court ruled in favor of Upbit’s parent company, Dunamu. The court temporarily suspended a three-month business restriction issued by South Korea’s Financial Intelligence Unit (FIU). This means Upbit can continue onboarding new users during the ongoing legal process.
FIU Alleges Legal Breach
The FIU’s penalty accused Upbit of violating the Special Financial Transactions Act. The main concern was that Upbit allowed transactions with unregistered overseas exchanges. These transactions allegedly lacked proper real-name verification. The FIU considered this a serious breach of national anti-money laundering laws.
Dunamu filed a lawsuit against the penalty, calling it excessive and harmful. The company asked the court to review the case. Judge Soonyeol Kim, leading the 5th Administrative Division, granted an emergency suspension. The ruling blocks the FIU’s restriction from taking effect until the final verdict.
As a result, new users on Upbit can still deposit and withdraw cryptocurrencies. This will remain in effect until 30 days after the main court ruling is delivered. For now, operations will continue without disruption. The decision provides relief to the exchange and its growing user base.
Related: SEC Schedules Four New Crypto Roundtables This Year: Report
Crypto Interest Rising Fast
According to a report, the cryptocurrency market heated up in 2024, and new investors accounted for about 33% of those entering the market. Many were motivated by global events. Trump’s election campaign and the approval of a Bitcoin spot ETF drew strong investor interest. This has boosted optimism around Bitcoin’s future performance in 2025.
At the same time, investments in memecoin have increased sharply, largely due to the listing of such coins in centralized exchanges. As of February 2025, Bithumb has listed 16 meme coins compared to Upbit’s six. Despite regulatory pressure, the crypto mood in Korea remains positive. Over 75% of local investors believe Bitcoin will surpass 150 million KRW in 2025.
