Bithumb Breathes a Sigh of Relief as Suspension of Business Ban Is Put on Hold; What About Coinone? [Crypto Briefing]

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[The Financial News] Bithumb has gotten some breathing room after the Financial Intelligence Unit (FIU) temporarily suspended the effect of its partial business suspension order. Since Dunamu Inc. also won a stay of enforcement earlier, Coinone, which recently filed an administrative lawsuit, is also likely to have its partial business suspension order suspended.
According to the virtual asset industry and legal circles on the 30th, the Second Administrative Division of the Seoul Administrative Court, presided over by Chief Judge Gong Hyun-jin, suspended the effect of the FIU's six-month partial business suspension order against Bithumb. The suspension will remain in place until 30 days after the ruling is issued in the main cancellation lawsuit.
The court found that Bithumb could suffer "irreparable harm" if the order were enforced. The panel explained, "If the effect of this order is not suspended, new customers will be restricted from depositing and withdrawing virtual assets externally for six months," adding, "Even this limitation alone is expected to make it difficult to attract new customers."
The court also took into account the changing regulatory environment, including recent discussions on the General Act on Digital Assets. It said, "In the near future, listed companies and corporations registered as professional investors are expected to be allowed to participate in the virtual asset trading market. If the order remains in effect, it will have a negative impact on attracting new customers, including corporations."
It added, "If the effect continues, part or all of the business suspension period is likely to pass while the main cancellation lawsuit is being reviewed. Even if the order is later canceled, Bithumb is unlikely to be able to reverse the negative effects it suffered in the meantime, such as restrictions on attracting new customers and damage to its reputation."
Earlier, on the 16th of last month, the FIU imposed a heavy penalty on Bithumb, including a six-month partial business suspension and a fine of 36.8 billion won, saying the company had violated 6.65 million obligations under the Act on Reporting and Using Specified Financial Transaction Information, including bans on transactions with unreported virtual asset businesses, customer verification (KYC) obligations, and transaction restriction obligations. In response, Bithumb filed both a cancellation lawsuit and a request for a stay of enforcement with the Seoul Administrative Court on the 23rd of last month.
Meanwhile, Coinone also filed a lawsuit on the 27th with the Seoul Administrative Court against the FIU, seeking to cancel its partial business suspension order and requesting a stay of enforcement. Coinone had previously received a fine of 5.2 billion won and a three-month partial business suspension order from the FIU on the 13th for violations of the special financial information law.
Legal circles are leaning toward the view that Coinone's partial business suspension order is also likely to be suspended. That is because Bithumb, as well as Dunamu Inc., received approval for a stay of enforcement in March last year. In both cases, the courts recognized the possibility of "irreparable harm."
One administrative litigation specialist said, "A stay of enforcement is a procedure designed to prevent 'irreversible harm' caused by the effect of an order. It takes into account not only financial losses but also intangible and tangible damage, such as harm to a company's creditworthiness." The lawyer added, "Since similar decisions were already made in the cases of Upbit and Bithumb, both of which won stays of enforcement, Coinone's case is also likely to follow a similar course."
Meanwhile, the FIU on the same day filed an appeal with the Seoul Administrative Court, challenging the lower court's ruling that canceled Dunamu Inc.'s three-month partial business suspension order. On the 9th, the court had previously sided with Dunamu Inc., saying the FIU's sanctions were unreasonable.
yimsh0214@fnnews.com Im Sang-hyeok Reporter