According to local media reports, a South Korean court has approved a six-month stay of the suspension order against the cryptocurrency exchange Bithumb pending the final ruling.
According to Yonhap News, Judge Kong Hyun-jin of the Second Administrative Division of the Seoul Administrative Court approved on Thursday a request to suspend part of the operations of the Financial Intelligence Unit, an anti-money laundering agency under the Financial Services Commission. Reported.
The financial intelligence agency initially sent a suspension notice to the cryptocurrency exchange in March, alleging that the company violated anti-money laundering obligations, which would prevent new customers from making external cryptocurrency deposits and withdrawals.
According to The Korea Herald, South Korea’s financial intelligence agency also imposed a fine of 36.8 billion Korean won (approximately $25 million) on the company for allegedly failing to verify user identities in around 6.65 million cases. According to reports, the company’s CEO, Lee Jae-won, also faces disciplinary action. According to reports at the time.
According to Yonhap News, the six-month suspension is the harshest penalty imposed to date on a South Korean won cryptocurrency exchange and was originally set to take effect on March 27. However, Bithumb filed an administrative lawsuit on March 23 and requested a stay of enforcement. The enforcement of the penalty has been suspended pending the court’s review of this request. The court’s decision to grant the stay allows the suspension to remain in effect while enabling the company to continue normal operations until a final ruling is made.
Bithumb previously stated that suspending services would stifle new user growth and harm its business, while the financial intelligence agency believes the impact on revenue would be limited. According to the Korea Herald, Bithumb also plans to contest the fine, which remains unpaid more than four weeks after the deadline, despite a 20% early payment discount offered by the financial intelligence agency.
According to Bithumb, "We plan to faithfully state our position throughout the remaining legal proceedings."
The Block has contacted Bithumb for comment.
Due to regulatory scrutiny and a "mistaken click," the Bithumb IPO has been postponed.
Last month, Bithumb pushed back its proposed IPO timeline to 2028 amid regulatory scrutiny, while its domestic competitor Upbit also formulated its own listing plans.
Executives also discussed a recent mistake earlier this year caused by a finger slip, in which... incorrect distribution as part of an internal promotional campaign, the exchange theoretically gifted users 620,000 bitcoins. The exchange stated that most of the actual funds stolen have been recovered, and a company-wide task force has been established to prevent similar incidents from occurring again.
The error triggered an investigation, and the Financial Services Commission of Korea has been reviewing the exchange's internal controls and risk management.