Regulation
Upbit Operator Dunamu Files Appeal Against FIU Over New Customer Transaction Suspension
South Korean crypto exchange Upbit’s operator, Dunamu, has challenged the sanctions imposed by the Financial Intelligence Unit (FIU) by filing an appeal with the Seoul Administrative Court. As part of the legal action, Dunamu filed a lawsuit seeking to overturn the business 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 exchange Upbit’s operator, filed an appeal against the Financial Intelligence Unit. The appeal seeks to cancel the business suspension order imposed by the FIU. In addition, the platform requests the court for a stay of execution, halting the implementation of the agency’s disciplinary actions.
Keeping specific details undisclosed, a Dunamu official stated,
We made a careful decision, and it is difficult to talk about the specific details…We will faithfully explain during the trial.
Dunamu Faces Business Suspension Order over Regulatory Obligations
Recently, South Korea’s FIU announced disciplinary actions against Dunamu citing its failure to meet key regulatory obligations. On Tuesday, the agency asked the platform to end business operations for three months. As part of the development, Dunamu would face restrictions on new customers’ crypto transactions.
In detail, the regulator banned Dunamu from facilitating new users to transfer cryptocurrencies from and to other exchanges from March 7 to June 6, 2025. However, the platform’s existing customers could continue trading activities during the suspension period.
Along with the business suspension order, the FIU also took disciplinary actions against Dunamu’s executives. Notably, the regulator sent a warning to CEO Lee Sirgo and dismissal orders or cautions for eight other employees.
Notably, South Korea’s increasing scrutiny over crypto platforms comes amid the US SEC’s loosened regulations. 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 several key regulations, including virtual asset transaction rules, customer verification requirements, and suspicious transaction reporting mandates. In particular, the regulator found Dunamu facilitating over 45,000 crypto transactions with 19 unregistered overseas virtual asset service providers.
In addition, the platform failed to adhere to the customer verification rules on a massive scale. In January, the FIU suspended Upbit’s operations, citing Know-Your Customer (KYC) violations. The agency also warned the company over violating the Specific Financial Transaction Information Act.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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