According to a recent development, Dunamu, the parent company of South Korea’s largest crypto exchange, Upbit, is locked in a legal battle with the country’s Financial Intelligence Unit (FIU). The conflict follows a business suspension order issued during South Korea’s ongoing crackdown on crypto-related offenses. Upbit Legal Challenge Over FIU Sanctions It’s worth mentioning that on the morning of February 28, the organization sued the Seoul Administrative Court to overturn the FIU’s decision. Previously, the agency accused Upbit of failing to perform proper customer due diligence in hundreds of thousands of cases, leading to a three-month restriction on new customer transactions from March 7 to June 6. In response, Dunamu argues differently. In their defense, they articulated that the punishment is excessive and could harm its operations. Furthermore, the firm has followed compliance measures to address regulatory concerns. Similarly, they argued vigorously that the FIU imposed sanctions without fully considering key facts, making the decision unfair. Regulators Tighten Crypto Oversight Since the start of this year, the South Korean leadership has been making serious efforts to regulate the crypto industry. More importantly, the FIU’s crackdown is part of a larger decision of the agency to ensure strict compliance with anti-money laundering and security laws. In addition, the principalities believe stronger oversight is necessary to prevent fraud and illegal financial activities. Recently, several crypto exchanges have been penalized, and regulators have demanded higher transparency in customer verification and transaction monitoring. Despite these measures, Upbit’s legal battle signals growing tension between crypto platforms and regulators. Dunamu’s challenge could set a precedent for how authorities enforce regulations in the future. New Task Force to Tackle Crypto Crimes In a related move, South Korea has launched a Joint Investigation Unit (JIU) to address crypto-related crimes . Based in the Seoul Southern District Prosecutors’ Office, the JIU consists of 35 financial regulators and prosecutors from the Financial Services Commission and the Financial Supervisory Service. The unit’s primary goal is to investigate fraud, theft, and market manipulation involving digital assets. This follows the success of a temporary task force established in 2023, which prosecuted 74 individuals and arrested 25 for fraudulent crypto activities. The agency thinks the new unit will improve enforcement against illegal crypto activities. The post Upbit Owner Fights Back Against South Korean Regulators appeared first on TheCoinrise.com .
