A South Korean court has overturned the Financial Intelligence Unit’s (FIU) three-month partial suspension of Dunamu, the operator of crypto exchange Upbit, according to local reports.
Yonhap News Agency reported Tuesday that the Seoul Administrative Court ruled in favor of Dunamu, canceling the sanction related to alleged Anti-Money Laundering (AML) violations.
The court noted that while clear rules exist for transactions above 1 million won (around $675), regulations for smaller transfers lack sufficient clarity, weakening the FIU’s basis for enforcement in this case.
The decision limits the regulator’s ability to impose significant AML penalties on crypto exchanges when compliance standards are not clearly defined. It also brings to a close a dispute that began in February 2025, when the FIU issued the suspension—later paused by the court during Dunamu’s legal challenge.
Addressing the FIU’s claims, the court said the regulator had not provided specific guidance on required compliance measures. In that context, it found that Dunamu had taken its own steps, and even if those proved inadequate in hindsight, there was no clear evidence of intent or gross negligence.
The FIU had originally imposed the three-month partial suspension on Feb. 25, 2025, restricting new Upbit users from transferring digital assets following an on-site inspection. The regulator alleged that Dunamu facilitated transactions with unregistered overseas virtual asset service providers and failed to meet customer due diligence requirements, identifying more than 600,000 suspected Know Your Customer violations.
Dunamu responded by filing a lawsuit and seeking an injunction to halt enforcement shortly after the penalty was announced. On March 27, 2025, the court granted the injunction, allowing Upbit to continue onboarding new users while the case was under review.
