The effect of the 'three-month partial suspension of business' imposed on Upbit, a virtual asset exchange, by financial authorities has been temporarily suspended.

According to the virtual asset industry on the 27th, the 5th Administrative Division of the Seoul Administrative Court (Presiding Judge Kim Soon-yeol) made a decision to accept the application for stay of execution filed by Upbit operator Dunamu against the Financial Intelligence Unit (FIU) the previous day.

The partial suspension of business imposed on Upbit will be suspended until the main lawsuit filed by Dunamu is concluded. This will buy Dunamu some time. This is because the suspension will be effective until 30 days from the date of the main lawsuit judgment.

Earlier, the FIU stated that it had violated the Specific Financial Information Act (Special Financial Information Act) on the 25th of last month. The authorities claimed that during an on-site inspection conducted last year, Upbit supported transactions with an overseas unreported virtual asset exchange and allowed transactions without customer verification measures.

For this reason, Dunamu and its executives and employees were severely punished. The FIU decided on a ‘3-month partial suspension of business’ for Upbit, prohibiting new users from sending virtual assets (deposits and withdrawals). It confirmed a ‘disciplinary warning’ for executives including Dunamu CEO Lee Seok-woo, and ‘dismissal’ for the compliance officer.

Afterwards, on the 27th of last month, two days after the finalization of the heavy disciplinary action, Doonamu filed a lawsuit with the administrative court to cancel the partial suspension of business and to suspend execution.