A South Korean court has temporarily suspended the Financial Intelligence Unit's (FIU) ban on registering new customers for crypto exchange Upbit. The decision allows the platform to resume attracting users until a final verdict is issued on the lawsuit filed by parent company Dunamu, which is challenging the regulator's sanctions. Previously, the FIU accused Upbit of violating the rules for working with unregistered foreign services and shortcomings in KYC procedures.

The conflict began in February, when the regulator blocked access to new Upbit customers after finding up to 600,000 violations in user identification and 45,000 transactions with illegal platforms. This is part of South Korea's overall strategy to tighten control over the crypto market, with authorities blocking foreign exchanges and requiring companies to be fully transparent in their operations.

Amid a global fight against tax evasion and financial fraud, South Korea continues to tighten regulation. In 2024, mandatory reporting for international crypto transfers and the blocking of dozens of unregistered platforms via Google Play and the App Store will be introduced.