South Korea’s aggressive regulatory offensive against major crypto exchanges has hit a judicial roadblock. In a high-stakes ruling, the Seoul Administrative Court has temporarily blocked the Financial Intelligence Unit (FIU) from enforcing a partial business suspension against Bithumb, the nation’s second-largest exchange.
The stay of execution, granted just as sanctions were set to paralyze new user growth, allows Bithumb to maintain normal operations while it fights the FIU’s claims in a full administrative lawsuit.
FIU’s partial business suspension
The FIU had previously imposed a fine of 36.8 billion won (approximately $27 million) alongside a six-month partial suspension of operations, citing multiple violations of the country’s financial regulations.
The suspension primarily targeted new users, restricting external virtual asset deposits and withdrawals—one of the strictest penalties applicable to exchanges operating in the Korean won market.
The 2nd Administrative Division of the Seoul Administrative Court accepted Bithumb’s application for a stay of execution, effectively halting the enforcement of regulatory penalties.
Alleged violations and compliance rules
Authorities accused Bithumb of breaching the Specific Financial Information Act in over 6.65 million instances.
The violations reportedly included engaging with unregistered virtual asset service providers, failing to meet customer identification (KYC) obligations, and breaching transaction monitoring and restriction requirements.
These lapses formed the basis for one of the toughest enforcement actions seen in South Korea’s crypto sector.
While the sanctions were originally scheduled to take effect on March 27, they had already been provisionally delayed after Bithumb filed an administrative lawsuit along with the stay request.
With the court’s latest decision, enforcement will remain suspended until a final judgment is delivered—leaving uncertainty around the long-term outcome.
Also Read:- Kazakhstan Targets Illicit Crypto Network, Seizes $3.2M in USDT
