Dunamu Wins Court Challenge to FIU Sanctions, Adding Momentum to Naver Merger

Dunamu won a first-instance administrative suit against South Korea’s financial authorities.

The Seoul Administrative Court ruled in favor of Dunamu in its lawsuit seeking to cancel a partial business suspension imposed by the Financial Intelligence Unit, or FIU, on April 9, according to the court.

The case was filed after the FIU ordered a three-month partial suspension of Dunamu’s business last year. At the time, the FIU barred new customers from transferring virtual assets, citing transactions with unregistered virtual-asset businesses and violations of know-your-customer, or KYC, requirements.

Dunamu had argued that the law was open to differing interpretations and that the sanctions were excessive.

The ruling could add momentum to Dunamu’s merger push with Naver. Last year, the companies approved a comprehensive share exchange that would bring Dunamu into the Naver group. If completed as planned, Naver Financial would make Dunamu a wholly owned subsidiary.

The decision could also influence sanctions involving other virtual-asset exchanges. The industry views the case as significant because it is the first court ruling on a business suspension imposed on a virtual-asset exchange, making it a potential benchmark for future cases.

Bithumb, which recently received similar sanctions from the FIU, has also filed an administrative lawsuit and requested a stay of execution. The Dunamu ruling may serve as a reference in that litigation.

The outcome could also affect discussions over the Digital Asset Basic Act. Industry participants say it may influence the broader policy direction on the level of regulation applied to exchanges.