[DigitalToday reporter Sangyeop Oh (오상엽)] Dunamu, the operator of digital asset exchange Upbit, won a first-instance administrative lawsuit it filed after rejecting a 3-month partial suspension order imposed by financial authorities.

The Seoul Administrative Court’s Administrative Division 5, presided over by Judge Jeongwon Lee (이정원), ruled on Wednesday in favour of the plaintiff in Dunamu’s lawsuit against the Financial Intelligence Unit (FIU) under the Financial Services Commission seeking cancellation of the partial suspension order.

The court said clear regulatory provisions exist to block transactions with unreported digital asset businesses for trades of 1 million won or more, but specific regulation is insufficient for transactions below 1 million won.

On the FIU’s claim that Dunamu failed to take sufficient necessary measures, the court said it could recognise that the plaintiff took measures of its own in a situation where authorities did not present specific measures and guidelines the plaintiff was required to implement.

It added that it was difficult to view the plaintiff as having intentionally or with gross negligence failed to take necessary measures simply because its measures later proved insufficient.

The FIU notified Dunamu in February last year of a 3-month partial suspension and other measures after detecting suspected violations of the Act on Reporting and Using Specified Financial Transaction Information by Dunamu and its employees. A field inspection by the FIU at the time found that Dunamu traded with overseas unreported digital asset businesses and violated customer identification obligations, it said. Dunamu has since filed a lawsuit challenging the decision.