South Korean Court Freezes FIU's Partial Business Ban on Coinone Through May 29

A South Korean court has granted Coinone temporary relief, suspending the Financial Intelligence Unit's (FIU) partial business ban until May 29. The Seoul Administrative Court issued the order on April 25, 2025, pausing the FIU's enforcement measures that included a 5.2 billion won fine and a three-month partial suspension. The court stressed the move is provisional and does not decide the merits of the dispute, but allows time for full judicial review. The FIU, which operates under the Financial Services Commission (FSC), announced the sanction on April 13, 2025. Regulators said Coinone violated the Act on Reporting and Using Specified Financial Transaction Information, citing alleged failures to report suspicious transactions and shortcomings in customer due diligence. The partial suspension was set to begin April 29 and would have barred new customers from transferring virtual assets, a restriction that could have sharply curtailed user growth. The 5.2 billion won penalty (about $3.9 million) ranks among the largest levied against a South Korean crypto exchange. While existing users would have remained unaffected, the curbs on new customer onboarding were expected to weigh on growth and competitiveness. In granting the stay, the court pointed to potential irreparable harm to Coinone, possible procedural defects in the FIU's process, and broader public-interest considerations, including the risk of market disruption and damage to consumer confidence. Coinone may continue normal operations, including onboarding new users, while the case proceeds. The decision is being closely watched across the domestic crypto sector as the FIU steps up enforcement actions. Market participants see the outcome as potentially shaping how future regulatory penalties are challenged in court and how aggressively the FIU pursues sanctions. Key dates: - April 13, 2025: FIU fines Coinone 5.2 billion won and orders a three-month partial business suspension. - April 25, 2025: Seoul Administrative Court grants a temporary suspension of the FIU measures. - April 29, 2025: Planned start date for the suspension, now blocked by court order. - May 29, 2025: Current expiry of the temporary suspension, pending any extension or further ruling. Legal observers described the order as a meaningful procedural check on regulatory power, while noting it is not a determination on wrongdoing. For users, trading continues as normal and new accounts can be opened during the suspension period. The core legal dispute remains unresolved, and Coinone could still face restrictions later if the FIU penalty is ultimately upheld. Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.