Coinone sues South Korea's FIU over sanctions, seeks to halt enforcement

South Korean cryptocurrency exchange Coinone has filed an administrative lawsuit with the Seoul Administrative Court seeking to overturn a partial business suspension ordered by the Financial Intelligence Unit (FIU), Naver reported. The exchange also requested a stay of enforcement while the case proceeds. The FIU's measure bars new users from depositing or withdrawing crypto assets to external exchanges, while existing users are not affected. The FIU previously imposed a three-month partial suspension and a 5.2 billion won fine on Coinone for alleged violations of the Act on Special Financial Information, including rules prohibiting transactions with unregistered operators, as well as antimoney laundering (AML) and know-your-customer (KYC) compliance and transaction restrictions. With Coinone's filing, all of South Korea's major exchanges are now involved in legal disputes tied to FIU sanctions.