Bithumb suspension halted: Seoul court stays FIU’s six-month penalty

South Korea’s Seoul Administrative Court has halted a six-month partial business suspension for crypto exchange Bithumb. The stay of execution blocks, for now, the Financial Intelligence Unit (FIU) penalty tied to alleged transfers of virtual assets using an unregistered overseas service provider. Bithumb challenged the FIU action in court, arguing the order was disproportionate and that it followed compliance steps. The FIU said Bithumb violated South Korea’s AML rules by lacking proper due diligence on a foreign counterparty. The court’s decision does not cancel the underlying lawsuit; it only pauses the suspension until a final ruling. Legal experts expect a prolonged dispute. For traders, this Bithumb suspension halt reduces the near-term operational risk and supports market confidence while the case continues. However, the eventual outcome remains uncertain, meaning sentiment could swing again if regulators win on the merits. If upheld against Bithumb, the decision could also push other exchanges to tighten overseas-partner and AML controls; a Bithumb win could encourage more regulatory challenges.