Court Sided With Crypto Exchange in Korea

Korean Court Rules in Favor of Cryptocurrency Exchange Against Bank

A South Korean district court has ruled the Nonghyup Bank, a significant bank in the nation, can’t block transactions to the account of cryptocurrency exchange Coinis predicated only on the government’s anti-money laundering guidelines. This is the first time that a Korean crypto exchange has taken legal action against a financial institution for blocking its own transactions.

The exchange filed a complaint with the court trying to prohibit the lender from approving its transactions after deposits into its account were obstructed by the bank . Nonghyup Bank mentioned the Virtual Currency Anti-Money Laundering (AML) Guidelines set by the Nation’s Financial Services Commission (FSC) as its own reason.

The court ruled Monday that it’s illegal to the lender to suspend the exchange’s transactions predicated solely on the FSC guidelines and proceeded to dismiss the suspension. Zdnet elaborated:

It is the first time that a cryptocurrency exchange has responded to bank suspension measures and has taken legal action.

Kim Tae-lim, a lawyer connected to the case, explained that Nonghyup Bank breached the contract together with Coinis because the exchange”has the right to deposit and withdraw money in the account in accordance with the deposit agreement entered into between the bank and the exchange,” the Digital Daily detailed. Kim was further quoted by the book:

This case is significant in that it is a decision to point out that indiscriminate regulation against a virtual currency exchange should be avoided in the absence of legal grounds.

Leave a Reply

Your email address will not be published. Required fields are marked *