Court suspends Coinone's 3-month business suspension pending trial

A Seoul administrative court has halted a three-month business suspension imposed on South Korean cryptocurrency exchange Coinone. The order, issued by the Financial Intelligence Unit (FIU) under the Financial Services Commission, targeted Coinone for alleged violations of the Act on Reporting and Using Specified Financial Transaction Information.

The court granted Coinone's request for an injunction, suspending the enforcement of the business suspension. This means Coinone can continue its normal operations until a final ruling is made in the main lawsuit. The court acknowledged Coinone's argument that the suspension would cause significant and irreparable business losses, particularly in attracting new customers.

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The court accepted Coinone's claim of preventing irreparable business damage.

The FIU had initially imposed the suspension and a fine of 5.2 billion won ($3.8 million) after an on-site inspection revealed 90,000 violations. The business suspension specifically restricted new customers from depositing or withdrawing virtual assets externally. The sanctions were initially set to take effect on April 29, but Coinone filed a lawsuit and an injunction request on April 27, temporarily freezing the order.

In its decision, the court dismissed the FIU's claim that suspending the penalty would significantly harm public interest. The court stated that any potential harm to public interest was abstract and not specific enough to outweigh the immediate business damage Coinone would face. This ruling allows Coinone to operate without interruption while the legality of the FIU's sanctions is thoroughly examined in court.

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The court ruled that the FIU's claim of significant harm to public interest was merely a possibility of abstract and unilateral infringement, not a concrete and individual harm.