Court Suspends FIU’s Three-Month Partial Business Ban on Coinone

A South Korean court has suspended a financial regulator’s partial business ban on local crypto exchange Coinone.

The Seoul Administrative Court’s 10th division on May 29 granted Coinone’s request to halt enforcement of a three-month partial business suspension imposed by the Financial Intelligence Unit, according to Yonhap News and other local media. The sanction will remain suspended until 30 days after a ruling in the main lawsuit.

The FIU last month said Coinone violated the Act on Reporting and Using Specified Financial Transaction Information, including by breaching a ban on transactions with about 90,000 unreported virtual asset service providers and failing to meet customer verification requirements. It imposed a three-month partial business suspension and a 5.2 billion won ($3.8 million) fine. The business restriction bars new customers from transferring virtual assets to and from external wallets.

The sanction had originally been scheduled to take effect on April 29. But Coinone filed an administrative lawsuit and sought a stay of execution on April 27, temporarily suspending the measure through May 29.